Number of hours worked

The number of hours the employer must pay the NMW for depends on the work the workers do. The number of hours worked during the reference period is calculated differently depending on the type of work done by the worker. It is far from obvious which category applies and HMRC will often decide on a category that an employer has not anticipated.  This can lead to an inadvertent breach.

There are four types of work defined in the NMW Act 1998:

  • Salaried hours work
  • Output work
  • Time work
  • Unmeasured work

It is possible that some workers will do more than one type of work during a pay reference period.