NMWM07025 - Types of work: confirming salaried hours work: flowchart
Pages NMWM07030 to NMWM07038 describe tests which help to determine whether a worker is working under a salaried hours contract and doing salaried hours work. They are summarised in the decision flowchart below.
Flowchart to decide if salaried hours work applies
Question 1:
Is the worker entitled under their contract to be paid:
an annual salary, or
an annual salary and performance bonus or salary premium (from 6 April 2020)?
(See NMWM07034)If Yes → Go to Question 3
If No → Go to Question 2
Question 2:
Can the employer provide additional evidence of how the worker’s entitlement to an annual salary is calculated?
If Yes → Go to Question 3
If No → Worker is not performing salaried hours work. Establish what other type of work is being performed. (See NMWM07010)
Question 3:
Does the worker’s contract provide a basic number of hours per year, or are the basic hours per year ascertainable?
(See NMWM07030)
If Yes → Go to Question 5
If No → Go to Question 4
Question 4:
Can the employer provide an explanation of how the basic hours are ascertained?
If Yes → Go to Question 5
If No → Worker is not performing salaried hours work. (See NMWM07010)
Question 5:
Is the only payment that a worker is entitled to receive for the basic hours:
annual salary (and performance bonus or salary premium from 6 April 2020)?
(See NMWM07034 & NMWM07036)If Yes → Go to Question 6
If No → Worker is not performing salaried hours work. (See NMWM07010)
Question 6:
Is the worker paid either:
in equal monthly, weekly, two-weekly (from 6 April 2020), or four-weekly instalments,
or varying monthly instalments resulting in equal quarterly amounts (unless a permitted variation applies)?
(See NMWM07038)If Yes → Worker is performing salaried hours work. (See NMWM07020)
If No → Worker is not performing salaried hours work. (See NMWM07010)