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HMRC internal manual

National Minimum Wage Manual

Pay reference periods & elements of pay: payments made after the last day of 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 9(1)(d)
* before 6 April 2015; National Minimum Wage Regulations 1999, regulation 10(2)

Where a worker’s contract terminates, any payments made by the employer to the worker in the calendar month immediately following the date of termination, shall be treated for the purposes of calculating national minimum wage pay and ensuring national minimum wage rates have been paid, as if they were paid in the worker’s final pay reference period.

For example: if a contract terminates on 15 July, any payments paid before 16 August will be treated as if they were paid in the final pay reference period.

This applies even when the worker has a pay reference period of less than a month (i.e. a week).

See (NMWM09050) for payments made in later pay reference periods where employment is continuing.

See (NMWM11160) deductions and payments in the month following termination of contract.

See (NMWM09200) Payments linked to leaving.

See (NMWM09205) for the treatment of common payments made by the employer at the end of the employment.