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HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
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Entitlement to National Minimum Wage: Non-employment and non-employed status

The terms “Non-employment” and “Non-employed status” are terms commonly used by training providers when placing people with employers for learning purposes.

These terms have no bearing on entitlement to the national minimum wage which is determined by examining the relationship between all the parties including the employer and the person placed with them and the learning provider.

Generally, these people receive payments (sometimes called a “training allowance”) via the training provider or the business where the person is placed.

Any payment to the person, whether paid by the employer or the training provider, may represent a payment for work done, unless it is;

  • A reimbursement of genuine expenses covered by receipts, or
  • Paid by some external source and completely unrelated to the work being performed (such as a specific government benefit).

Payment for work done will bring the person within the scope of the national minimum wage legislation and they will fall within the definition of a worker regardless of any references to “non-employed status”.

When presented with such an arrangement a NMW Officer will have to investigate and establish the nature of the relationship between the parties to form an opinion about whether the learner is a worker (NMWM05020) or not.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)