Is there a NMW issue here?

Seasonal business & annualised contracts

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Seasonal tourism business looking at overhauling employee contracts and is favouring annualised hours i.e. 2,080 annual hours stated in contract - inclusive of 6 weeks' holiday - for which £18,000 will be paid over 12 equal monthly salary payments.

Expectation is that the employee works more hours during the season (April - October) and less during the closed season. For example, 55 hours/wk in open season, 25 hours/wk in closed season.

Am I correct in thinking that NMW applies on a monthly basis, and therefore the employee would be underpaid during the summer?

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By the_drookit_dug
05th Aug 2020 22:44

Looks like I'm wrong in my thinking and the above scenario is okay per: https://www.gov.uk/minimum-wage-different-types-work/paid-an-annual-salary

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By Paul Crowley
06th Aug 2020 09:56

Watched a webinar from PFP on this NMW that makes me now much more concerned about the issue.
HMRC pouring resources into regulation as penlties so easy to raise.

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