NMWM08070 - Working time: salaried hours work: considering adjustments for absences
Relevant legislation
General
Absence with normal pay
Absence with no or reduced pay
Relevant legislation
The legislation that applies to this page is as follows:
- National Minimum Wage Regulations 2015, regulation 23
General
For a worker performing salaried hours work, absences from work are included within the basic hours where the worker is contractually entitled to receive their normal salary. Common absences treated in such fashion include holidays, sickness, jury service and maternity and paternity leave.
Absence with normal pay
Where such absences occur, there is no adjustment required to the hours to be treated as worked in the respective pay reference period as long as the worker is paid their normal salary.
For example, absence counted as part of the time treated as work
- A monthly paid worker performing salaried hours work has a calculation year of 2080 basic hours. The contract provides full pay for any sickness absence up to 3 months.
- The time treated as worked for each pay reference period is 173.33 hours (NMWM08035).
In June, the worker was absent from work for a complete week due to illness. As the contract entitled the worker to be paid their full salary for the absence, the time treated as worked for that month remained at 173.33 hours.
Absence with no or reduced pay
Where a worker is absent and the worker is entitled to no, or reduced pay, an adjustment is required to the hours to be treated as worked in the respective pay reference period; the hours treated as worked are reduced by the number of hours absent.
For example, the time treated as worked reduced by absence
- A monthly paid worker performing salaried hours work has a calculation year of 2080 basic hours. The contract provides no pay for the first 3 days of any sickness absence and then full pay for up to 6 months.
- The time treated as worked for each pay reference period is 173.33 hours (NMWM08035).
In June, the worker was absent from work for four days, Monday to Thursday, due to illness. The employer paid the salary according to the contract, less 3 days for sickness absence calculated as 24 hours pay (3 days of 8 hours).
The time treated as worked for that month is 149.33 hours (173.33 hours less 24 hours unpaid sick absence).
For example, the time treated as worked reduced by absence
- A two-weekly paid worker performing salaried hours work has a calculation year of 2080 basic hours. The contract provides no pay for the first 3 days of any sickness absence and then full pay for up to 6 months.
- The time treated as worked for each pay reference period is 80 hours (NMWM08035).
In period 10, the worker was absent from work for four days, Monday to Thursday, due to illness. The employer paid the salary according to the contract, less 3 days for sickness absence calculated as 24 hours pay (3 days of 8 hours).
The time treated as worked for that period is 56 hours (80 hours less 24 hours unpaid sick absence).
Please note that whilst absences can affect the hours treated as worked in a pay reference period they do not reduce the number of basic hours in a calculation year nor whether excess hours (NMWM08110) have been worked. The only absence which will reduce the total number of basic hours for consideration of excess hours is an absence in connection with industrial action (NMWM08230).