Overnight allowances can count towards minimum wage
08/11/09
The Employment Appeal Tribunal (EAT) has ruled that allowance payments, made to employees who have spent the night at their place of work, can be taken into account when calculating their minimum wage.
Current law states that certain allowances cannot be counted towards minimum wage payments which can include working unsociable hours and performing special duties above the worker's normal duties.
But the EAT ruled that Mr S's payment differed from unsociable working hours and could therefore contribute to his wages, as the sleep-in payment was not an allowance, but a payment for performing a working duty.
Employers should carefully consider whether pay agreements meet the requirements of the National Minimum Wage - our team of specialist lawyers can advise in you in all aspects of employment law.
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