NMWM07025 | Types of work: confirming salaried hours work: flowchart

Pages NMWM07030 to NMWM07038 describe tests which help to determine whether a worker is working under a salaried hours contract and doing salaried hours work. They are summarised in the decision flowchart below.

Flowchart to decide if salaried hours work applies

Question 1:
Is the worker entitled under their contract to be paid:

• an annual salary, or

• an annual salary and performance bonus or salary premium (from 6 April 2020)?
  (See NMWM07034)

• If Yes → Go to Question 3

• If No → Go to Question 2

Question 2:
Can the employer provide additional evidence of how the worker’s entitlement to an annual salary is calculated?

• If Yes → Go to Question 3

• If No → Worker is not performing salaried hours work. Establish what other type of work is being performed. (See NMWM07010)

Question 3:
Does the worker’s contract provide a basic number of hours per year, or are the basic hours per year ascertainable?
(See NMWM07030)

• If Yes → Go to Question 5

• If No → Go to Question 4

Question 4:
Can the employer provide an explanation of how the basic hours are ascertained?

• If Yes → Go to Question 5

• If No → Worker is not performing salaried hours work. (See NMWM07010)

Question 5:
Is the only payment that a worker is entitled to receive for the basic hours:

• annual salary (and performance bonus or salary premium from 6 April 2020)?
  (See NMWM07034 & NMWM07036)

• If Yes → Go to Question 6

• If No → Worker is not performing salaried hours work. (See NMWM07010)

Question 6:
Is the worker paid either:

• in equal monthly, weekly, two-weekly (from 6 April 2020), or four-weekly instalments,

• or varying monthly instalments resulting in equal quarterly amounts (unless a permitted variation applies)?
  (See NMWM07038)

• If Yes → Worker is performing salaried hours work. (See NMWM07020)

• If No → Worker is not performing salaried hours work. (See NMWM07010)