NMWM08370 - Working time: output work: time spent performing output work where no "fair" piece rate applies

Relevant legislation

The legislation that applies to this page is as follows:

• National Minimum Wage Regulations 2015, regulation 37(b)

 

General

For a worker performing output work, where a “fair” piece rate does not apply, is not valid or not being paid it is not appropriate to calculate the time treated to be worked using average hourly output rates. In such circumstance the employer has to pay at least National Minimum Wage for the actual time spent producing the output.

Example of rated output work where no average hourly rate applies

An employer

• pays £0.76 per item output, and
• has not calculated an average hourly output rate.

A worker spends 100 hours processing 525 items in a pay reference period.

The worker must be paid at least National Minimum Wage for the time spent working in the pay reference period, in this case 100 hours.