Business Helpsheets

• On every shift over six hours a minimum 20-minute break which in some circumstances can be accumulated but is increased to 30 minutes if under 18 and the period is more than four and a half hours.
• 11 hours (12 hours for under 18's) consecutive rest between shifts each day which again can be accumulated in some circumstances.
• One day off each week (2 days for under 18's) or two days off every fortnight which again can be accumulated in some circumstances
• From 1 April 2009 5.6 weeks (28 days) paid annual holiday based on the worker’s average pay which can include bank and public holidays. These amounts accumulate pro-rata from the day they start working and are worked out on a pro-rata basis for part-time employees. From 1 April 2009, payment in lieu cannot be provided for anything less than 5.6 weeks. The holiday pay must also be paid when the holiday is taken and not added to say an hourly rate when work is done.
• There are special rules for night workers who regularly work at least 3 hours during the night which is at least 7 hours including from midnight to 5 am and usually from 11 pm to 6 am. They should not exceed eight hours every 24 hours averaged over 17 weeks although if the work involves special hazards or physical or mental strain this is the case every 24 hours.

The National Living Wage and National Minimum Wage

The National Minimum Wage (NMW) affects all businesses without exception.
The compulsory National Living Wage (NLW) is the national rate set for people aged 25 and over. The NLW is enforced by HMRC alongside the NMW, which they have enforced since its introduction in 1999.

Generally, all those who are covered by the NMW, and are 25 years old and over, will be covered by the NLW. These include:

• employees;
• most workers and agency workers;
• casual laborer’s;
• agricultural workers; and
• apprentices who are aged 25 and over.

The NMW is the minimum pay per hour that most workers are entitled to receive by law. The rate to which they are entitled depends on a worker's age and whether they are an apprentice.

NMW rates from 1 April 2020 are as follows:

• £8.72 for over 25-year-olds;
• £8.20 for 21-24-year-olds;
• £6.45 for 18-20-year-olds;
• £4.55 for under 18s; and
• £4.15 for apprentices

Payments that must be included when calculating the NMW are:

• income tax and NICs;
• wage advances or loans and repayments;
• repayment of overpaid wages;
• items that the worker has paid for but which are not needed for the job or paid for voluntarily, such as meals;
• accommodation provided by an employer above the offset rate (£7.55 a day or £52.85 a week); and
• penalty charges for a worker's misconduct.

Some payments must not be included when the NMW is calculated.
These are:

• payments that should not be included for the employer's use or benefit, for example, if the employer has paid for travel to work;
• items that the worker has bought for the job and has not been refunded for, such as tools, uniform, safety equipment;
• tips, service charges and cover charges; and
• extra pay for working unsocial hours on a shift

Entitlement

Several people are not entitled to the NMW, including:

• self-employed people;
• volunteers or voluntary workers;
• company directors; and
• family members, or people who live in the family home of the employer who undertakes household tasks.

All other workers including pieceworkers, home workers, agency workers, commission workers, part-time workers, and casual workers must receive at least the NMW.
It is not possible to opt-out of the national minimum wage.