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Contents

Official guidance
National Minimum Wage Manual

NMWM10000 · Accommodation and accommodation offset

  • NMWM10010 · Introduction
  • NMWM10020 · The accommodation offset
  • NMWM10030 · The effect of the accommodation offset
  • NMWM10040 · The employer is responsible for the provision of accommodation
  • NMWM10050 · Examples and comments: when is the employer regarded as responsible for the provision of accommodation?
  • NMWM10060 · When is the employer regarded as being responsible for the provision of accommodation? Example 1: worker has a joint tenancy agreement
  • NMWM10070 · When is the employer regarded as being responsible for the provision of accommodation? Example 2: employer pays the cost of accommodation
  • NMWM10080 · When is the employer regarded as being responsible for the provision of accommodation? Example 3: worker chooses not to use the accommodation
  • NMWM10090 · When is the employer regarded as being responsible for the provision of accommodation? Example 4: employer provides a caravan pitch
  • NMWM10100 · Living accommodation
  • NMWM10110 · Examples and comments: when is accommodation regarded as living accommodation?
  • NMWM10120 · When is accommodation regarded as living accommodation? Example 1: board and lodging in bed and breakfast accommodation
  • NMWM10130 · When is accommodation regarded as living accommodation? Example 2: multiple occupancy of the accommodation
  • NMWM10140 · When is accommodation regarded as living accommodation? Example 3: employer provides hotel accommodation
  • NMWM10150 · When is accommodation regarded as living accommodation? Example 4: employer provides facilities which are not used by the worker
  • NMWM10155 · When is accommodation regarded as living accommodation? Example 5: worker provides own furniture
  • NMWM10160 · Establishing the total charge for living accommodation when the accommodation offset applies
  • NMWM10170 · When the accommodation offset does not apply
  • NMWM10180 · Special provisions for councils and social housing providers
  • NMWM10190 · Special provisions for students who also work for their Further or Higher Education Institution
  • NMWM10200 · Examples of calculating pay for National Minimum Wage where accommodation is provided free of charge
  • NMWM10210 · Examples of calculating pay for National Minimum Wage where charge for accommodation is at or below the accommodation offset rate
  • NMWM10220 · Examples of calculating pay for National Minimum Wage where charge for accommodation is above the accommodation offset rate
  • NMWM10230 · Considering the charge for living accommodation against the offset
  • NMWM10240 · Considering the charge for living accommodation against the offset: scenario 1, payments for rent not aligning with pay reference periods
  • NMWM10250 · Considering the charge for living accommodation against the offset: scenario 2, time work being performed with paid absence
  • NMWM10260 · Considering the charge for living accommodation against the offset: scenario 3, accommodation charges apply to multiple occupants
  1. Accommodation and accommodation offset: contents
  2. Accommodation and accommodation offset: when is accommodation regarded as living accommodation? Example 2: multiple occupancy of the accommodation

NMWM10130 | Accommodation and accommodation offset: when is accommodation regarded as living accommodation? Example 2: multiple occupancy of the accommodation

From HM Revenue & Customs · National Minimum Wage Manual

Example 2

An employer operates as an employment agency engaging large numbers of staff from Europe. As the workers are from overseas and arrive in the UK with nowhere to live, the employer provides them with accommodation in a 4 bedroom, fully furnished house. At busy times, up to 24 people are staying at the house.

Comment

The multiple occupancy is a factor in this case. The employer is unlikely to be regarded as providing living accommodation if too many people are occupying the premises. For example, if suitable facilities for sleeping are not provided for each worker and the access to other facilities are unreasonably restricted then the accommodation would not be regarded as living accommodation. When considering living accommodation it is necessary to consider the availability and access to the accommodation. In this example, if the employer ensured that only 4 workers were occupying the premises then living accommodation may be provided.

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