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HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
, see all updates

Types of work: time work

Relevant legislation

The legislation that applies to this page is as follows:

For pay reference periods commencing

* on or after 6 April 2015; National Minimum Wage Regulations 2015, regulation 30
* before 6 April 2015; National Minimum Wage Regulations 1999, regulation 3

Time work is work that is:

  • not salaried hours work (NMWM07020), and
  • is paid for in relation to the time worked (based on the time spent doing the work).

There are three circumstances when work is time work.

  1. Where the worker is paid under his contract solely according to the length of time worked.
  2. Where the worker is paid under his contract according to his level of output over an hour (or other period of time) and the worker is required to work for a set period of time. [This contrasts with ‘output work’ (NMWM07060)].
For example, a piece worker in a factory is required to work for 8 hours each day. Although he is paid according to his output per hour, he is regarded as doing time work for national minimum wage purposes because he is required to be at work for a set period of time each day).
  1. Where the worker works as in 2 above, but is paid by the hour because he fails to reach the level of output per hour set by his contract.
For example, a piece worker is required to work for 9 hours per day and produce 4 garments per hour. He is normally paid per garment produced. However, if he only produces 3 garments per hour he is still paid for 9 hours work.

Time work may exist in any trade sector and in any occupation. For example, a worker will be regarded as doing time work if:

* they do not meet the conditions for performing salaried hours work but their pay relates to the time worked or when they are expected to work
* they do piecework according to set hours
* they work on a commission-only basis according to set hours
* they are paid in relation to set hours or times when they are expected to work.