Understanding Working Time for Minimum Wage Compliance
The Latest Minimum Wage Position
Minimum wage rates in the UK changed on 1st April 2025, meaning workers aged 21 and above are entitled to at least £12.21 per hour. Rates for younger workers were also increased to £10.00 for 18 to 20-year-olds and £7.55 for workers aged 16 and 17 as well as apprentices.
From 1st April 2026, a further increase will be put in place. This will include a rise in the National Living Wage to £12.71 for workers aged 21 and over. With increases approaching once again, employers need to fully understand what counts as “working time” in order to avoid accidental underpayment.
Why Working Time Matters
Compliance for minimum wage is based on how much a worker earns per hour. This means that it is necessary that employers include all hours that can legally qualify as working time. It’s common for errors to occur when staff travel during the working day, wait for tasks to begin, complete mandatory training or undertake standby duties. As rates are rising once again in 2026, misunderstandings could turn out to be costly.
What Counts as Working Time
As a rule of thumb, HMRC counts working time as any period in which a worker is at the workplace and expected to be working. This includes not only the time employees are spent waiting for a task to start but also staying on site during interruptions and attending mandatory training.
Working time also includes the time taken to travel between assignments or different work locations during the day. For overnight shifts, certain sleep-in arrangements count as working time if the worker is required to respond to issues during the night.
What Does Not Count as Working Time?
There are scenarios in which times are clearly excluded from minimum wage calculations. Everyday commuting between home and the standard workplace does not qualify, nor do rest breaks, annual leave, sickness absence or family-related leave.
“Sleep-in” time may also not qualify as working time if the worker is allowed to sleep, given appropriate sleeping facilities and not expected to remain awake.
Key Areas Employers Should Pay Close Attention To
To ensure compliance, it is beneficial for employers to take particular care when assessing:
- Travel taken between work assignments during the day
- Time spent waiting on site, including before tasks begin
- Mandatory training, including associated travel
- On-call or standby time at or near the workplace
- Sleep-in shifts, especially where responsibilities continue overnight
These areas frequently lead to miscalculations and underpayment, especially where workers are on irregular hours or mixed duties.
Who Is Affected?
These sets of rules apply to all workers aged 16 and over, regardless of whether they are paid by the hour, salaried or on an alternative pay structure. Sectors with variable working patterns - including care, hospitality, retail, facilities management and delivery - face a heightened risk of failing to comply due to irregularities, but any employer with travelling or standby roles need to be aware of these obligations.
When the Changes Apply
The current minimum wage has been in force since April 2025. The recently announced increase will apply from 1st April 2026. Employers should begin to review their pay structures, shift arrangements and working-time calculations ahead of these changes in order to ensure that all workers will remain compliant.
How DSK Accountants Can Support You
At DSK we help employers understand how working time should be calculated within their payroll processes and ensure compliance with both current and upcoming minimum wage frameworks. We can carry out pay and working-time reviews, help you prepare increases as well as highlight any areas where underpayment risk may arise. Get in touch today.