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21.—(1) “Salaried hours work” is work which is done under a worker’s contract and which meets the conditions in paragraphs (2) to (5) of this regulation.
[F1(2) The first condition is that the worker is entitled under their contract to be paid—
(a)an annual salary; or
(b)an annual salary and one or both of—
(i)a performance bonus; and
(ii)a salary premium.]
(3) The second condition is that the worker is entitled under their contract to be paid that salary or salary and performance bonus [F2or salary premium (or all three)] in respect of a number of hours in a year, whether those hours are specified in or ascertained in accordance with their contract (“the basic hours”).
[F3(4) The third condition is that the worker is not entitled under their contract to a payment in respect of the basic hours other than—
(a)an annual salary; or
(b)an annual salary and one or both of—
(i)a performance bonus; and
(ii)a salary premium.]
[F4(5) The fourth condition is that the worker is entitled under their contract to be paid, where practicable and regardless of the number of hours actually worked in a particular week, month or other period, in instalments which—
(a)are equal and occur not more often than weekly and not less often than monthly; or
(b)occur monthly and vary but have the result that the worker is entitled to be paid an equal amount in each quarter.]
(6) Circumstances where it may not be practicable to pay a worker by equal instalments, or by an equal amount in each quarter, include where—
(a)a performance bonus is awarded;
[F5(aa)a salary premium is paid;]
(b)the annual salary is varied;
(c)a payment is made in respect of hours in addition to basic hours; or
[F6(d)the employment starts or terminates during a week, month or other period provided for in paragraph (5)(a) with the result that the worker is paid a proportionate amount of their annual salary for that week, month or other period.]
(7) Work may be salaried hours work whether or not—
(a)all the basic hours are working hours;
(b)the worker works hours in excess of the basic hours (whether the worker is entitled to be paid for those additional hours or not);
(c)the annual salary may be reduced due to an absence from work.
(8) A “performance bonus” is a payment paid to a worker on merit attributable to the quality or amount of work done in the course of more than one pay reference period.
[F7(9) A “salary premium” is—
(a)an amount of pay which is—
(i)in addition to the annual salary; or
(ii)an increase in the rate of pay for particular working hours;
(b)in respect of the basic hours; and
(c)attributable to working—
(i)at a particular time of the day;
(ii)on a particular day;
(iii)at a particular location;
(iv)in a particular working environment;
(v)within a particular geographical area;
(vi)on a particular task; or
(vii)subject to a particular responsibility.]
Textual Amendments
F1Reg. 21(2) substituted (6.4.2020) by The National Minimum Wage (Amendment) (No. 2) Regulations 2020 (S.I. 2020/339), regs. 1, 5(a) (with regs. 11-16)
F2Words in reg. 21(3) inserted (6.4.2020) by The National Minimum Wage (Amendment) (No. 2) Regulations 2020 (S.I. 2020/339), regs. 1, 5(b) (with regs. 11-16)
F3Reg. 21(4) substituted (6.4.2020) by The National Minimum Wage (Amendment) (No. 2) Regulations 2020 (S.I. 2020/339), regs. 1, 5(c) (with regs. 11-16)
F4Reg. 21(5) substituted (6.4.2020) by The National Minimum Wage (Amendment) (No. 2) Regulations 2020 (S.I. 2020/339), regs. 1, 5(d) (with regs. 11-16)
F5Reg. 21(6)(aa) inserted (6.4.2020) by The National Minimum Wage (Amendment) (No. 2) Regulations 2020 (S.I. 2020/339), regs. 1, 5(e)(i) (with regs. 11-16)
F6Reg. 21(6)(d) substituted (6.4.2020) by The National Minimum Wage (Amendment) (No. 2) Regulations 2020 (S.I. 2020/339), regs. 1, 5(e)(ii) (with regs. 11-16)
F7Reg. 21(9) inserted (6.4.2020) by The National Minimum Wage (Amendment) (No. 2) Regulations 2020 (S.I. 2020/339), regs. 1, 5(f) (with regs. 11-16)
Commencement Information
I1Reg. 21 in force at 6.4.2015, see reg. 1
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