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HMRC internal manual

National Minimum Wage Manual

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HM Revenue & Customs
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Deductions and payments from workers: contractual deductions or payments - for conduct relating to ‘any other event’

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, regulations 12(2)(a)
* before 6 April 2015; National Minimum Wage Regulations 1999, regulations 33(a) & 35(a)

When considering contractual deductions and payments from workers it is necessary to consider both:

  • conduct and discipline (NMWM11060), and
  • conduct relating to ‘any other event’.

Conduct relating to ‘any other event’

A deduction made from a worker’s pay or a payment made by the worker to his employer which is both:

  • a specified contractual liability of the worker AND 
  • in respect of the worker’s conduct relating to ‘any other event’

will not reduce national minimum wage pay.

The circumstances relating to the deduction or payment must be specified in the worker’s contract (i.e. the worker must be contractually liable) and the clause must be in respect of a voluntary deduction or payment (for example, something not in connection with the employment NMWM11100) which is triggered by ‘any other event’ which has some relationship to the voluntary conduct of the worker, such as a choosing to resign. Examples of conduct relating to ‘any other event’ are described in NMWM11066.

Where deductions are being made from workers it is reasonable to expect the employer to provide evidence to a NMW Compliance Officer regarding the exact circumstances of such deductions. If an employer suggests that a deduction is stipulated as conduct relating to ‘any other event’ in a worker’s contract (written or otherwise) and the clause makes the worker contractually liable for a deduction, then it is reasonable to see some evidence to expressly support this.

See NMWM11070 if an employer makes deductions or payments as specified in a worker’s contract which are not related to conduct and discipline or conduct relating to ‘any other event’.