Casualisation at work - a guide for trade union reps (August 2014)

Chapter 10

How the National Minimum Wage is calculated

[ch 10: page 75]

Different methods are used to calculate the NMW hourly rate, depending on whether someone is paid:

• a salary;

• according to hours worked (time work);

• according to output (piece work); or

• unmeasured work (involving specific tasks but no set times).

Most casual workers are either time workers or piece workers. Zero hours contract workers are “time workers” (see Chapter 6).

The basic hourly pay rate must comply with the NMW. It is a breach of the NMW regulations for an employer to pay a basic hourly rate that is below the NMW, even if that basic rate is enhanced for different shifts, for example “time and a half” for overtime, nights or weekend work. It is a breach of the NMW to pay a basic hourly rate that is below the NMW, even if a worker only ever receives the enhanced rate (Hamilton House v Hillier UKEAT/0246/09).


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