NMWM08123 - Working time: salaried hours work: considering excess hours worked in the calculation year: four-weekly example
Relevant legislation
The legislation that applies to this page is as follows:
- National Minimum Wage Regulations 2015, regulations 26 to 28
Example of considering excess hours
When considering whether a worker has worked excess hours over and above their basic hours it is necessary to consider for each pay reference period the actual hours worked and treated as worked (NMWM08100).
A four-weekly paid worker has 2080 basic hours in the calculation year 7 January 2019 to 6 January 2020.
To identify the time treated as worked for each pay reference period divide the basic hours by 13:
- 2080 ÷ 13 = 160 hours
As long as the worker does not exceed the basic hours in the calculation year, the employer must pay at least National Minimum Wage for 160 hours per four-week period regardless of the time the worker actually spends working.
For example;
- In the first four-weekly period, the worker actually worked his standard hours as per contract, 9:00 to 5:00, Monday to Friday each weekday (20 days).
The time counted for excess hours purposes is 160 hours (20 days of 8 hours)
As the cumulative excess hours of 160 are less than the basic hours for the calculation year (2080) no excess hours calculation is required for this pay reference period. For National Minimum Wage purposes the worker must be paid at least National Minimum Wage for 160 hours.
- In the following four-weekly period, the worker took a week off and returned to work and worked several longer days to prepare for an important presentation. No payment was made for the additional 10 hours worked.
The time counted for excess hours purposes is: 170 hours;
- 15 days of 8 hours (120 hours),
- 5 days holiday at 8 hours per day (40 hours) and
- unpaid additional time (10 hours).
As the cumulative excess hours of 330 (160 + 170) are less than the basic hours for the calculation year (2080) no excess hours calculation is required for this pay reference period. For National Minimum Wage purposes the worker must be paid at least National Minimum Wage for 160 hours.
- In the third four-weekly period, the worker worked his standard contractual hours, 9:00 to 5:00 but the employer recognised that the worker had been working more hours than usual and gave 2 days’ time off in lieu. Time off in lieu is simply time not worked, see NMWM08550.
The time counted for excess hours purposes is: 144 hours (18 days of 8 hours).
As the cumulative excess hours of 474 (160 + 170 + 144) are less than the basic hours for the calculation year (2080) no excess hours calculation is required for this pay reference period. For National Minimum Wage purposes the worker must be paid at least National Minimum Wage for 160 hours..
- In the following period, the worker continued to work several longer days as well as being absent due to sickness for 4 days, only 1 of which was paid. On return to work the worker spent a total of 5 hours travelling to deliver a presentation. All the travelling time took place outside normal working time. No payment was made for the additional time spent working the longer days, totalling 10 hours.
The time counted for excess hours purposes is 167 hours;
- 15 days of 8 hours (120 hours),
- 4 day sick absence at 8 hours per day (32 hours),
- unpaid additional time (10 hours), and
- hours travelling outside of normal working time (5 hours)
As the cumulative excess hours of 641 (160 + 170 + 144 + 167) are less than the basic hours for the calculation year (2080) no excess hours calculation is required for this pay reference period. For National Minimum Wage purposes the worker must be paid at least National Minimum Wage for 136 hours (160 hours less 24 hours unpaid absence).