When working within the social sector, it is crucial that both employers and employees know what is classed as ‘paid working time’ and ‘Non-paid working time’. Employees are entitled to be paid for all working time at National Minimum Wage.
Over time what is classed as ‘paid working time’ has been the subject to dispute and getting it wrong can prove very costly. Employers should bear in mind the government has a ‘Naming and Shaming’ scheme for companies that fail to pay their workers the NMW. This runs the risk of causing commercial and reputational damage if perceived incorrectly.
It is important to understand and analyse what constitutes as ‘paid working time’ and to pay accordingly. This can include travel time, time with clients and associated waiting time as well as availability for work (although, there are exceptions) For example:
- Travel time is classed as paid working time for NMW purposes, unless the travel is from the worker’s home to their place of work or the worker’s home to an assignment. These can include travel in connection with an assignment and in between assignments, travel to a training venue or from your place of work to a client.
- Waiting time is treated as paid working time if the worker is available for work and on standby at their place of work. If the worker is waiting at home for available work this is not classed as paid working time.
Employers should take care when assessing what falls within paid working time, a small incorrect judgment for one individual can quickly become a huge liability over time when duplicated over a number of employees.
If you require further advice or wish to have a confidential chat on how we can support your business please contact us on 01252 863700 or compliance@epayme.co.uk