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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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.