Rate of record
Zero hours, piecework and the minimum wage
NMW applies to every hour you actually work, even on a zero-hours contract. For output work (piecework), the employer must use a fair-piece-rate calculation to guarantee the NMW floor on average.
Zero hours: NMW per hour worked
NMW does not care about contract type. It cares about hours worked. A zero-hours worker must be paid NMW for every hour of time work, salaried work, output work or unmeasured work in the pay reference periodgov.uk.
The fair-piece-rate calculation
For output work (a per-unit rate), the employer must establish the mean hourly output rate through a representative sample, then divide the NMW by that mean output, multiply by 1.2, and use the resulting per-unit rate. The 1.2 is a statutory uplift to ensure the NMW is met on average across the workforcegov.uk.
Stand-by, waiting and travel
Time waiting at the workplace to be assigned work is time work. Travel between client visits for a domiciliary worker is time work. Travel from home to the first job and home from the last is not.
The Employment Rights Bill
The Employment Rights Bill 2024 introduces a right to a contract reflecting average hours over a reference period, the right to reasonable notice of shifts and compensation for shifts cancelled or curtailed at short notice. The NMW per-hour-worked test is unchangedgov.uk.