Eligibility for the minimum wage
Source: gov.uk (2025-05-12)

The definition of a 'worker', and the types of work or workers that are eligible for the minimum wage.

You must pay people who do work for you at least the minimum wage if they are a ‘worker’ for minimum wage purposes and a specific exemption does not apply. The current minimum wage rates can be found at National Minimum Wage and National Living Wage rates (https://www.gov.uk/national-minimum-wage-rates).

A worker is defined in the National Minimum Wage Act 1998, section 54(3) as someone who has entered into or works under (or, where the employment has ceased, worked under):
- a contract of employment
- any other contract by which the individual undertakes to perform work or services personally for someone else (unless the individual is working on a genuinely self-employed basis for a client or customer)
The term ‘worker’ includes ‘employees’.

A contract of employment can be written, expressed orally or implied – but must comprise an offer from one party and the acceptance of this offer from the other. Acceptance can be shown simply by the worker doing the job.

Certain other groups – such as home workers and agency workers – have special provisions covered by additional rules.

This definition of a worker also includes part-time workers, those on short term contracts and casual workers.

Where an individual is working on a genuinely self-employed basis – for a client or customer – they will not have a contract of employment and are not entitled to the minimum wage (see self-employment (#self-employment)).

An agreement cannot waive the requirement to pay minimum wage.

An employer cannot exclude or limit the payment of minimum wage within any type of contract. Likewise, a worker cannot agree to be paid less than the minimum wage or to be unpaid.
- Back to Index (https://www.gov.uk/guidance/calculating-the-minimum-wage/index-to-the-manual)
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Determining the status of a worker

Most workers are entitled to the minimum wage, but there are some exemptions (#people-who-dont-qualify-for-the-minimum-wage). If there is any doubt, it is important for employers to establish the status of an individual carrying out work for them.

Whether an individual is a worker or not will determine whether minimum wage legislation applies.

For the purposes of the minimum wage, the use of the term ‘status’ is potentially different from that used for income tax and national insurance purposes.

There are a number of issues to consider when determining the status of a worker. In all cases, the situation as a whole is what matters. This should be based not only on what has been agreed in writing or orally, but on what happens in practice and the real nature of the relationship.

There is no single factor which determines whether someone should be treated as a worker for minimum wage purposes. The list below highlights some key areas that could help establish whether an individual is a worker or not:
- they have a written, oral or implied contract
- they personally have to attend work (or work from home) with disciplinary sanctions being in place if they do not
- they get something of value in return for this work, like money, benefits in kind or a promise of future work/payment
- they are not genuinely self-employed (see self-employment (#self-employment))
People who don’t qualify for the minimum wage

The following do not qualify for the minimum wage:
- voluntary workers
- workers on a government employment programme
- members of the armed forces
- family members of the employer living in the employer’s home
- non-family members living in the employer’s home who share in the work and leisure activities, are treated as one of the family and aren’t charged for meals or accommodation, for example some au pairs
- workers younger than compulsory school leaving age (https://www.gov.uk/know-when-you-can-leave-school) (usually 16)
- higher and further education students on a work experience placement up to 1 year
- workers on government pre-apprenticeships schemes
- people on a European Union learning programme (Erasmus+)
- people working on a Jobcentre Plus work trial for 6 weeks or less
- share fishermen
- prisoners
Self-employment

Workers who are genuinely self-employed are not entitled to the minimum wage. There is no exact definition of self-employment in the National Minimum Wage Act 1998. However, there are a number of areas to consider when determining whether a person is genuinely self-employed and running a business on their own account. Some factors that may be relevant in determining this include:
- Does the individual risk a financial loss and do they have the ability to increase profits? If the risk lies with the individual, it points to self-employment.
- Does the individual provide tools, equipment and materials for the job? If they do, it points to self-employment.
- Is the individual required to do the work themselves or can they supply a substitute? If the individual has to carry out the work themselves, it becomes more likely that they are a worker.
- Are they able to work for others and does this happen? If they are able to work for whomever they want this points to self-employment.
- How do the parties involved view the arrangement? However, it’s important to note that the requirement to pay minimum wage cannot be waived.
- What sort of arrangement is in place surrounding breaks, time off, holidays and number of hours worked? If the individual has control over this, it is more likely they will be self-employed.
- Can the individual decide how and when to do the job? If yes, this may indicate self-employment.
- How is income tax and national insurance paid? If these deductions are made before payment to the individual, it points to a worker/employer arrangement.
- Is there an obligation to provide work? If one party is under an obligation to provide work to and pay the other party even if there is no work to do, then this would suggest an employer and worker relationship.
The tests above should be applied to the real relationship of what happens in practice – not simply what has been agreed orally or in writing. More information on self-employment is available. See Self-employed and contractor (https://www.gov.uk/employment-status/selfemployed-contractor).

Apprentices

The minimum wage apprentice rate will apply if:
- the apprentice is under the age of 19
- the apprentice is aged 19 or over and in the first year of their apprenticeship with their current employer
Once an apprentice aged 19 or over has completed the first year of their apprenticeship, they must be paid the relevant minimum wage rate for their age group from the first day of the pay reference period that begins on or after their 19th birthday or completion of the first year of their apprenticeship. See National Minimum Wage and National Living Wage rates (https://www.gov.uk/national-minimum-wage-rates) for information on rates.

To qualify for the minimum wage apprentice rate, a worker must be employed under a statutory apprenticeship agreement or a contract of apprenticeship. A worker will also qualify for the apprentice rate if they are treated as employed under a contract of apprenticeship for the purposes of the minimum wage legislation. These 3 categories are considered further below.

For information on when someone is employed as an apprentice and can be paid the apprentice minimum wage, see the links below:
- England: see Apprenticeship Funding Rules (https://www.gov.uk/guidance/apprenticeship-funding-rules)
- Scotland: see Apprenticeships in Scotland (https://www.apprenticeships.scot/for-employers/introduction-to-scottish-apprenticeships/how-are-they-funded/)
- Wales: see Apprenticeships in Wales (https://businesswales.gov.wales/skillsgateway/skills-and-training-programmes/apprenticeships)
- Northern Ireland: see Apprenticeships (https://www.nidirect.gov.uk/campaigns/apprenticeships)
For more information for England see taking on an apprentice (https://www.gov.uk/guidance/employing-an-apprentice-technical-guide-for-employers). This sets out that employers must sign a contract of employment and an apprenticeship agreement with the apprentice, as well as a commitment statement with the apprentice and training provider.

In the event of a dispute, it will ultimately be a matter for the courts or tribunals to decide whether or not a worker is an apprentice.

Statutory apprenticeship agreements

An apprenticeship agreement relates to a frameworks apprenticeship in England or Wales. The relevant agreement must include a statement of the skill, trade or occupation which the apprentice is being trained for.

An approved English apprenticeship agreement relates to a standards apprenticeship in England. Standards apprenticeships must last for a period of at least 12 months, although there is no minimum period in Wales.

Apprenticeship agreements must include at least 20% off-the-job training, which must be paid, except in Wales, where the decision on off-the-job training rests with the employer or sector. See Apprenticeships: off-the-job training (https://www.gov.uk/government/publications/apprenticeships-off-the-job-training) for more information on training time.

See an Apprenticeship agreement template (https://www.gov.uk/government/publications/apprenticeship-agreement-template) (for England) or Employing an apprentice (https://businesswales.gov.wales/skillsgateway/skills-and-training-programmes/apprenticeships/employing-apprentice) (for Wales).

Contracts of apprenticeship

Workers who are not engaged under the statutory apprenticeship schemes referred to above may also be apprentices if they are undertaking a work-based training programme under a contract of apprenticeship with their employer.

Contracts of apprenticeship do not have to be written. They can be orally agreed by the parties involved, but it is good practice to have a written contract of apprenticeship.

Contracts of apprenticeship may include:
- a statement setting out the rights and obligations of the employer and the apprentice
- what training is to be provided and to what level
- the length of the apprenticeship
- the pay rates
A worker is unlikely to be considered an apprentice if the sole purpose of their training is to perform a specific job or to perform a specific role in their current job. An apprenticeship should lead to transferable skills that can be applied more widely with different employers or in different sectors.

Treated as employed under a contract of apprenticeship

A worker will be treated as employed under a contract of apprenticeship for minimum wage purposes if they are engaged under particular government arrangements. The qualifying arrangements are different in each part of the United Kingdom.

In England, the relevant arrangements are:
- Apprenticeships
- Advanced Apprenticeships
- Intermediate Level Apprenticeships
- Advanced Level Apprenticeships
- Trailblazer Apprenticeships
In Scotland, the relevant arrangements are:
- Modern Apprenticeships
In Northern Ireland, the relevant arrangements are:
- Apprenticeships NI
In Wales, the relevant arrangements are:
- Foundation Apprenticeships
- Apprenticeships
- Higher Apprenticeships
Risk of underpayment

Apprentices may be vulnerable to minimum wage underpayment, in particular from:
- not being paid for all time worked. Working time includes any additional time added on to an apprentice’s shift, for example time spent at team handover meetings between shifts, or passing through security checks on entry and exit
- having deductions made from pay for items connected with the job, such as uniforms and tools
- being over-charged for living accommodation provided by their employer
- having tips from customers used to meet minimum wage pay
Common underpayment errors

The incorrect application of the apprentice rate by employers is a common reason for workers being underpaid. The incorrect recording of hours / off-the-job training time is also a cause. The scenarios below reflect situations in which underpayment of the appropriate rates may occur:
- employers continue to pay the apprentice rate to apprentices who are aged 19 years or over after they have completed the first year of their apprenticeship
- employers pay the apprentice rate to a worker who is not an apprentice. Simply calling somebody an apprentice is not enough. If a worker does not qualify as an apprentice, they are entitled to the minimum wage rate for their age
- employers fail to pay an apprentice for the time during normal working hours they have spent in training, both on- or off-the-job, as part of their apprenticeship, including on English and maths (if appropriate). For more information see the Apprenticeship funding rules and guidance for employers (https://www.gov.uk/guidance/apprenticeship-funding-rules#the-latest-rules-2020-to-2021)
- employers pay the apprentice rate before a worker actually starts their apprenticeship, or after it ends. Once an apprentice completes their apprenticeship, they are entitled to the minimum wage rate for their age from the first day of the pay reference period that begins on or after the start date
Example scenario 1 – Underpayment before or after an apprenticeship

Katy is 18 years old and is employed in a hairdressers’. Katy and her employer agree that Katy will undertake an apprenticeship in hairdressing with them. Prior to taking up this apprenticeship Katy should be paid at least the National Minimum Wage rate for her age (18 to 20 year-old rate).

In the first year of her apprenticeship, Katy is entitled to at least the apprentice rate (which is lower than the 18 to 20 year-old rate).

After the first year of her apprenticeship, Katy would be entitled to the National Minimum Wage for her age (18 to 20 year-old rate).

When the apprenticeship ends, if Katy remains in employment, she would be entitled to the National Minimum Wage for her age.

Example scenario 2 – Off-the-job training

John is 25 years old and works in a nursery. He is completing the second year of an Early Years Practitioner apprenticeship. As John is now in the second year of his apprenticeship and aged over 23 he is entitled to the National Living Wage.

As part of his apprenticeship John must complete 20% off-the-job training. John’s employer must include this within his contracted hours, and he must receive payment equating to at least the National Living Wage for the hours spent learning ‘off-the-job’.

Agricultural workers

Agricultural workers in Northern Ireland, Scotland and Wales have their own minimum rates of pay. This practice ceased in England from 1 October 2013. Workers employed before this date still have the right to the agricultural minimum wage if it says so in their contract. All agricultural workers must be paid at least national minimum wage rates unless they are covered by higher agricultural minimum wage rates.

For more information about the rates of pay see Agricultural Minimum Wage (https://www.gov.uk/agricultural-workers-rights/pay-and-overtime) and Agricultural workers in Northern Ireland (https://www.nidirect.gov.uk/articles/national-minimum-wage-and-living-wage#toc-1).

See Output work (piece rates) (https://www.gov.uk/guidance/calculating-the-minimum-wage/working-hours-for-which-the-minimum-wage-must-be-paid#output-work) and Pick for Britain (https://pickforbritain.org.uk/government-info/) for supplementary guidance on employing agricultural seasonal workers on this basis.

Agency workers

Special provision is made in the National Minimum Wage Act 1998 to ensure that individuals provided by an agency to work for a third party (under a contract or other arrangement between the agency and the third party) are treated as workers for minimum wage purposes. This will not apply if the individual is working on a self-employed basis.

Section 34 of the Act sets out that the agency worker is deemed to have a ‘worker’s contract’ with whoever is responsible for paying them – be that the agency or the third-party they are carrying out work for.

There are separate laws covering the responsibility of employment businesses to pay agency workers (among other things):
- the Employment Agencies Act 1973
- Conduct of Employment Agencies and Employment Businesses Regulations 2003
Conduct Regulation 15, in particular, requires that an employment business pay agency workers for hours worked even when the employment business itself has not been paid by the end hirer.

These regulations are enforced by the Employment Agency Standards Inspectorate (see Guidance for employment agencies (https://www.gov.uk/government/publications/conduct-regulations-2003-guidance-for-employment-agencies-and-employment-businesses)).

Home / remote workers

A home worker is an individual who agrees to do work at a location which is not under the control or management of the employer they are doing it for. This is often done in that individual’s home but can be done elsewhere.

Home workers will be entitled to the minimum wage if they are considered a worker for minimum wage purposes. They will also be entitled to the minimum wage if they would be a worker save for the usual requirement for the work to be executed “personally”, as this requirement is removed in the case of home workers by section 35 of the National Minimum Wage Act.

Offshore workers

Offshore workers are covered by the NMW Offshore Employment Order 1999. This extends minimum wage legislation to cover workers who work or ordinarily work:
- in the territorial waters of the UK
- in the United Kingdom sector of the continental shelf in connection with the exploration of the sea bed or its subsoil, or exploiting natural resources
- exploiting natural resources in a foreign sector of the continental shelf of a cross-boundary petroleum field
This applies regardless of whether the worker is a UK national or resident. It also applies to companies and businesses regardless of whether or not they are incorporated under United Kingdom legislation.

Offshore workers include workers on offshore installations such as oil rigs and platforms.

Workers on ships

Workers on ships are entitled to the minimum wage when they are working:
- in UK internal waters and ports, regardless of their nationality or the ship’s flag
- on ships on domestic trips in the UK territorial waters or the UK sector of the continental shelf
- outside the UK on a UK-flagged ship, unless either their employment is wholly outside the UK or they are not ordinarily resident in the UK
- outside the UK on non-UK flagged ships, if they ordinarily work in the UK
Interns and work experience

The term ‘work experience’ generally refers to a specified period of time that a person spends with your business, during which they have an opportunity to learn directly about working life and the working environment.

Work experience can also be called a ‘placement’ or an ‘internship’. ‘Internships’ are sometimes understood to be positions requiring a higher level of qualification than other forms of work experience and are associated with gaining experience for a professional career.

However, entitlement to the minimum wage does not depend on what someone is called by their employer, the type of work they do, how the work is described (such as ‘unpaid’ or ‘expenses only’), or the profession or sector in which they work. What matters is whether the arrangement they have makes them a ‘worker’ for minimum wage purposes. See Determining the status of a worker (#determining-the-status-of-a-worker).

The term ‘intern’ is not defined in minimum wage legislation so it is important to establish the nature of the relationship between the individual and the employer when deciding whether the intern is a worker or not for minimum wage purposes.

If any payment or remuneration is made for work done, the intern is likely to be regarded as a worker for minimum wage purposes. An intern may also be considered as a worker if they are promised a contract of future work or future pay.

Some people described as ‘interns’ may actually be volunteers or voluntary workers, while others may be undertaking work experience as part of further education or higher education courses and so will be exempt from the requirement to be paid pay minimum wage. Additionally, if the individual is job shadowing and not carrying out actual work, they are not eligible to be paid the minimum wage. Organisations offering internships or work placements should check if an exemption applies or if the person is a volunteer for minimum wage purposes.

Example scenarios

Lucas takes up an internship at a newspaper business. He agrees orally with the editor that he will work personally for 4 days a week from 9am to 5pm for 6 weeks during the summer. He will undertake research activities to provide background information on news stories and provide some written content for publication, often to tight deadlines. In return, he is assigned to an editor who will ensure he receives daily on the job journalism training. It is likely that Lucas has made an oral contract with the newspaper and should be paid at least the minimum wage.

Amanda applies for a position working at a record company. She is told that for 3 months she will be reimbursed ‘expenses only’ and is referred to as an ‘unpaid intern’. However, as part of her agreement with the company, it is promised that at the end of her ‘internship’ she will be taken ‘on the books’ and paid above the minimum wage. The promise of paid work means it is likely that Amanda should be paid at least the minimum wage for the whole time she spends at the record company.

David successfully applies for a 2-week work experience position in a small graphic design company. His main duties are preparing presentations for pitches for new business. He applied after seeing an advert offering £50 ‘travel expenses’ for each week. However, he receives these ‘travel expenses’ despite walking to work. Given he is paid a round sum, any amount in excess of the cost of his expenses would constitute remuneration for his role and therefore likely to mean he is a worker for the purposes of NMW.

The main exemptions which mean that an individual undertaking work experience or an internship is not entitled to the minimum wage are as follows:
- students working as a required part of a UK-based further or higher education course provided the placement does not exceed 1 year. This exemption does not prevent employers from remunerating these individuals or contributing towards expenses
- pupils of compulsory school age, generally 16 years or less
- participants in government schemes and programmes to provide training, work experience or temporary work, or to help in seeking or obtaining work
- work done as a participant in an EU Lifelong Learning Programme (Erasmus+)
- voluntary workers volunteering for a charity, voluntary organisation, associated fund-raising body or statutory body and receiving no monetary payments except limited and specified expenses and benefits
Example scenarios

Katerina is studying at teacher training college to become a primary school teacher. She spends 2 periods of 8 weeks working in local primary schools as part of her course. She does not need to be paid the minimum wage because the work is a required part of her course and the placement at the primary school does not exceed 1 year. However, in the evenings, Katerina works in a local restaurant to fund her studies. Katerina should be paid at least the minimum wage for her work in the restaurant as that is not part of her course.

Donna takes up an internship as a charity’s events organiser. She has a contract in which she has agreed to organise certain events for the charity and attend on particular days and times. She is not paid, but reasonable travel and lunch expenses are paid back. She does not need to be paid the minimum wage because she is a voluntary worker.

Trainees

Like the term ‘intern’, the term ‘trainee’ is not defined in national minimum wage legislation. It is a commonly used term by employers and training providers but has no bearing on whether or not someone is a worker for minimum wage purposes.

Generally, this term applies to someone being trained to perform work by an employer. However, if the individual is carrying out work for you, often called ‘on the job training’, they will fall within the definition of a worker. If the trainee is a worker, they must be paid the correct minimum wage rate for all hours worked.

It is important to distinguish between a worker who is referred to as a ‘trainee’ and those who are genuine apprentices for minimum wage purposes. See Apprentices (#apprentices)

Additionally, if the individual is a participant in a genuine traineeship programme – operated in England – they do not qualify for the national minimum wage.

See Traineeship information for employers (https://www.gov.uk/guidance/traineeship-information-for-employers) for more information.

Government training schemes

If a person is doing work experience with you as part of a government scheme to provide training, work experience or temporary work, or to help in seeking or obtaining work, you do not have to pay the minimum wage. These schemes are specifically defined in the minimum wage regulations. See Plan for Jobs’ skills and employment programmes: information for employers (https://www.gov.uk/guidance/plan-for-jobs-skills-and-employment-programmes-information-for-employers) for more information.

This is also the case for trial periods of work where workers participate in a specific government-funded scheme and work for 6 weeks or less.

Work experience as part of an education course

A person doing work experience which is a requirement of a higher or further education course (as defined in the minimum wage regulations) is not eligible for the minimum wage.

The work experience must be undertaken before the course ends and cannot exceed 1 year. The further education course has to be undertaken through a UK-based university or college.

EU lifelong learning programmes

Participants in the Erasmus+ scheme are not eligible for the minimum wage for work they do as part of the scheme.

Volunteers

Volunteers do not qualify for the minimum wage because they are not workers. They do not have any employment contract or contract to perform work or provide services.

You should be sure that a person is genuinely a volunteer when deciding whether minimum wage rules apply by reference to the actual working relationship between the individual and the organisation, as well as the detailed arrangements of the work being performed by that individual. The job title or label an individual is given is not conclusive in determining whether someone is a volunteer or a worker. A ‘volunteer’ may in fact be a worker if the arrangements under which they provide their services amount to a contract of employment or a contract to personally perform work or services. Volunteers can volunteer for any organisation, not just organisations in the not-for-profit sector.

If a person described as a volunteer is in fact a worker, they would qualify for the minimum wage unless a specific exemption applies.

Typically, a volunteer:
- can provide their time and effort completely freely
- can come and go as they please
- is under no obligations to provide services
- cannot be made to perform specific duties
- does not suffer any sanctions if they do not perform their duties
Genuine volunteers do not expect – nor are they entitled to receive – any monetary payments or benefits in kind (except perhaps some reimbursement of expenses).

See also Voluntary workers (#voluntary-workers).

Volunteer agreements

You may have written agreements with your volunteers or you may have written to them with confirmation letters, for instance outlining:
- the ethos of your organisation
- opening hours or attendance expectations
- what is expected of the role
- your organisation’s rules and procedures
- insurance indemnity provisions for them
As long as these agreements are intended to clarify the reasonable expectations of the volunteer and your organisation, and are clearly not intended to amount to a legally binding employment contract or a contract to personally perform work or services, they will not make the person a worker and entitled to be paid the minimum wage.

Imposing a requirement on a person to comply with a statutory obligation such as health and safety, or providing health and safety training, would not, on its own, result in the person being classed as a worker and entitled to the minimum wage. However, if a legally binding employment contract arises, the person would be entitled to the minimum wage unless a specific exemption applied.

Record keeping on volunteers

If you engage volunteers there is no obligation to keep specific records for minimum wage purposes. However, in the event of a disputed claim, you may find it useful to have basic details such as the names of volunteers, hours volunteered and any payments given to individuals (such as expenses). You should always be able to explain how you arrived at the level of any estimated expenses reimbursed.

See Minimum wage record keeping (https://www.gov.uk/guidance/calculating-the-minimum-wage/enforcing-the-minimum-wage#minimum-wage-record-keeping).

Volunteers’ expenses

An expense is an outlay of money that an individual has had to make. In some circumstances, you may wish to agree to reimburse expenses but there is no obligation to do so.

Reimbursement of reasonable out of pocket expenses alone is unlikely to change an individual’s status from a volunteer to a worker. Each case would be considered on its individual facts.

You may prefer to reimburse only expenses actually incurred and many volunteers prefer this. If you are reimbursing estimated expenses, you must be able to explain how you arrived at the level of expenses and be able to justify why this was a reasonable estimate.

You should take care to ensure that providing expenses does not suggest that an individual is a worker who is being paid to work. Should this happen, a worker would be entitled to the minimum wage unless a specific exemption applied, such as the voluntary worker exemption.

Volunteers and honoraria, gifts nominal recognition items, and other benefits in kind

For minimum wage purposes, a benefit in kind is a non-cash benefit or facility of any kind. Typically, a benefit in kind would have some monetary value and the provision of it would incur some cost on the provider.

A genuine honorarium in the form of an unexpected gift, with no obligation and of a small value is unlikely to mean the volunteer is entitled to the minimum wage. However, you should take care to ensure this does not create a contractual relationship whereby a person is undertaking work in return for gifts or rewards.

Items of nominal value such as pins, t-shirts or baseball caps given in recognition of volunteering, for instance to mark the successful end of a task or project, would be unlikely to result in the person being regarded as a worker and entitled to the minimum wage.

Volunteers’ uniforms and equipment

If you provide a volunteer with clothing or equipment, free of charge, that they can keep and that is needed for their duties, it is unlikely to result in the person being regarded as a worker for minimum wages purposes. Any items provided must be:
- reasonable – for example, a uniform for a volunteer helping at a golf event is reasonable, providing a set of golf clubs is not
- required for the volunteer to perform their duties, for example someone volunteering to usher crowds at an outdoor sporting event may need a branded jumper or jacket to perform their duties (see Uniforms (https://www.gov.uk/guidance/calculating-the-minimum-wage/calculating-the-minimum-wage#uniforms))
Volunteers and attendance at events

Where attendance at an event is necessary in order for the volunteer to carry out their duties, this alone is unlikely to result in the person being regarded as a worker. For instance, where a volunteer sells programmes at a football match and, as a consequence, has free entry to the ground, then watching the football match in itself is unlikely to result in the person being considered a worker for minimum wage purposes.

Training

If you provide training to a volunteer it will be a benefit in kind. However, it is unlikely to result in the volunteer being classed as a worker provided the training is:
- necessary for the volunteer to perform their duties
- for the sole or main purpose of improving the volunteer’s ability to do the work
- necessarily acquired in the course of the volunteering
As long as training meets these criteria, any resulting qualifications are unlikely to be considered a benefit in kind. Training over and above these criteria would likely result in the volunteer being considered a worker and entitled to the minimum wage.

Food and drink

Reasonable provision of food and drink during the volunteering day would not suggest that the volunteer is a worker and eligible for the minimum wage.

Voluntary workers

The term ‘voluntary worker’ has a specific meaning for minimum wage purposes. They are a worker and have an employment contract or a contract to personally perform work or provide services, which can be written, oral or implied. However, a voluntary worker does not qualify for the minimum wage.

Voluntary workers must work for:
- a charity – a body of persons, or the trustees of a trust, established for charitable purposes only
- a voluntary organisation – a body of persons, or the trustees of a trust, which is established only for charitable purposes but may not be a charity by definition, for example a local community group
- an associated fundraising body – a body of persons, the profits of which are applied wholly for the purposes of a charity or voluntary organisation, for example, a charity shop
- a statutory body – a body set up by an Act of Parliament to carry out given functions, such as local authorities, many schools and hospitals, and bodies such as English Heritage
- Community Amateur Sports Clubs registered with HM Revenue and Customs under the Finance Act 2002, schedule 18 are treated as being charities for the purposes of minimum wage enforcement
Not every worker who works for one of these organisations is automatically a voluntary worker. For someone to be classed as a voluntary worker they cannot be paid more than expenses (see below). If they are paid for the work they do, the person is probably a worker and entitled to the minimum wage.

Voluntary workers might not be given this title by the organisation that engages them. There may be people who consider themselves ‘volunteers’ but who are in fact workers due to the arrangements under which they work.

See also Volunteers (#volunteers)

Voluntary workers’ expenses

Voluntary workers may not receive any monetary payment apart from the reimbursement of expenses incurred:
- in the performance of duties
- in order to enable them to perform their duties
In both cases you can reimburse either:
- the expenses actually incurred
- a reasonable estimate of the expenses likely to be or to have been incurred, in which case you should be able to explain how you estimated the expenses reimbursed
Voluntary workers and expenses incurred in the performance of duties

Expenses incurred in the performance of duties are expenses incurred while the person is undertaking their work. They could include, for example, having to travel from one site to another while performing duties, being sent to purchase something as part of the duties, or having to pay for a hotel while performing duties at a conference.

Voluntary workers and expenses incurred in order to enable duties to be performed

Expenses incurred in order to enable a voluntary worker to perform their duties are expenses which occur outside of the voluntary work, but which are needed to enable the voluntary worker to undertake it. These expenses must be both necessary to undertake the voluntary work and reasonably incurred.

Examples might be:
- expenses to cover the cost of care of dependants needed to enable the voluntary worker to do the voluntary work
- expenses to cover the cost of a lunch during a break in the voluntary work – although the cost of the lunch should be reasonable and not excessive, otherwise it would not be reasonably incurred
- expenses to cover the cost of travelling to and from the voluntary work.
You cannot reimburse accommodation costs, such as rent, to voluntary workers. However, you can provide voluntary workers directly with reasonable accommodation in the circumstances of their role.

Example scenario

Nicola works full time for a charitable homeless shelter. She has to live at the shelter. She is not charged for her accommodation and she receives free meals from the canteen. She receives no other payments.

Receiving free meals and accommodation means that Nicola is a worker. However, the voluntary worker exemption would apply to Nicola because:
- she is working for a charity
- the accommodation she receives is reasonable in the circumstances of her employment
- the meals she receives are reasonable in the circumstances of the employment
Nicola is a worker but would not qualify for the minimum wage.

Voluntary workers’ benefits in kind

For minimum wage purposes, a benefit in kind is a non-cash benefit or facility of any kind. Typically, a benefit in kind would have some monetary value and the provision of it would incur some cost on the provider.

Voluntary workers may not receive benefits in kind apart from:
- reasonable subsistence for their voluntary role
- reasonable accommodation for their voluntary role
Whilst training is considered to be a benefit in kind, there are certain types of training which are specifically exempted from treatment as a benefit in kind (#voluntary-workers-and-training) for minimum wage purposes.

Voluntary workers and training

The following examples of training would not be considered a benefit in kind for minimum wage purposes:
- training necessary to perform the duties of the voluntary worker
- training for the sole or main purpose of improving the voluntary worker’s ability to do the work
- training necessarily acquired in the course of the voluntary work
As long as training meets this description, any resulting qualification would also be unlikely to be considered as a benefit in kind. Training over and above this would likely result in a person being considered a worker who is entitled to the minimum wage.

Example scenario

Eileen works 3 shifts a week on the reception desk of a charity. In return she is receiving training on the charity’s accounting and HR systems, although this is not needed for her role. She receives no other payments.

Eileen and the charity have entered into a relationship which is consistent with a contract. In return for the work she does, she is given training, which is not necessarily acquired in the course of her work or for the sole or main purpose of improving her ability to perform her work.

This indicates that Eileen is a worker for minimum wage purposes. Even though Eileen works for a charity, the voluntary worker exemption does not apply to Eileen because she is in receipt of training in excess of that allowed by the exemption. Eileen is entitled to the relevant minimum wage for her age.

If Eileen needed to use such training in her job, for instance if she was undertaking HR or accounting tasks using the systems she had been trained in, then Eileen’s training would be considered as improving her ability to do her work, and the voluntary worker exemption would apply. In these circumstances, she would not qualify for the minimum wage.

Voluntary workers’ accommodation or subsistence payments

For minimum wage purposes subsistence is generally taken to mean things like food, drink, laundry, basic toiletries, medicine, heating, lighting or other basic day to day needs in the circumstances of the employment, or in this case, the voluntary role.

Subsistence payments must:
- be solely for the purposes of providing subsistence and not provide an income on top of subsistence
- be an appropriate amount to provide the basic day to day needs of the individual in the circumstances of the voluntary work they are doing
- not include payment for their own accommodation – you can provide voluntary workers with reasonable accommodation in the circumstances of their voluntary work, but you cannot give them money to find or pay for their own accommodation
You must be able to demonstrate how you have reached the appropriate level of subsistence for the voluntary work in question. For instance, someone living in a bed and breakfast for the duration of the voluntary work with no access to cooking facilities may need more money to cover food and drink expenses than someone who is living at home. However, they would be unlikely to need money for heating and lighting as this would be provided by the bed and breakfast.

You should also consider the other expenses and benefits in kind that the voluntary worker is receiving. For example, if breakfast is being provided to a voluntary worker then subsistence payments should not include money for breakfast.

Direct engagement

Where a voluntary worker is engaged directly (that is working directly for/through the charity instead of doing some work for a charity through any other means) by a charity, voluntary organisation, associated fund-raising body or statutory body, they can be provided with reasonable subsistence in the circumstances of their employment. However, if a voluntary worker who is engaged directly is given payments for subsistence (as opposed to the subsistence itself), the voluntary worker exemption will not apply and they are entitled to the minimum wage.

Indirect engagement

A voluntary worker may receive monetary payment for subsistence if they are engaged as a result of arrangements made between a charity acting in pursuance of its charitable objectives and another charity, voluntary organisation, associated fund raising body or statutory body. These arrangements might include, for example, recruitment, funding and brokering arrangements.

Example scenario

Following her application to a coordinating charity, Nikita has been placed full time with an environmental group in the Scottish Highlands. Nikita is given a room in a shared house.

She receives subsistence payments from the organisation to pay her share of food and energy bills, her laundry and her toiletries. She receives no other payments.

The extent of payments that Nikita receives and the arrangements as a whole means she is a worker. However, Nikita may qualify for the voluntary worker exemption. She is working as a result of arrangements made between a charity and a voluntary organisation and in such circumstances voluntary workers may receive monetary payment for subsistence provided it is reasonable in the circumstances.

Each case would be dealt with based on its individual facts and consideration would be given to whether the level of payment was for subsistence or to provide an income on top. The payments for Nikita’s subsistence are reasonable in the circumstances of her employment so she is a voluntary worker who is not entitled to the minimum wage. This is the case regardless of whether she is reimbursed for expenses actually incurred, or is reimbursed based on a reasonable estimate.

Family members working in a family business exemption

A family member living at home as part of the family and helping out with family chores does not qualify for the minimum wage.

Similarly, work carried out by a family member, living at the family home of the employer and participating in the running of the family business, falls outside the national minimum wage provisions (regulation 58 of the National Minimum Wage Regulations 2015).

All of the following requirements must be met:
- the worker is a member of the employer’s family
- the worker resides in the family home of the employer
- the worker shares in the tasks and activities of the family
A limited company is a legal entity in its own right and cannot be considered to have a family, to be a member of a family or to own a family home so the family member exemption is not applicable in this instance.

Other groups not considered workers for National Minimum Wage purposes

Friends and Neighbours do not need to be paid the national minimum wage provided jobs are done under informal arrangements, for example a neighbour feeding a family pet whilst you are on holiday. However, if a contract is established between the parties, this would indicate an employer/worker relationship and payment at national minimum wage rates may be due.

Office holders may be appointed to a position by a company or organisation but do not have a contract or receive regular payment. They are not considered workers for minimum wage purposes.

Company Directors are examples of office holders and are not considered workers for minimum wage purposes unless they also have an employment contract or a contract to personally perform work or provide services with the same company, which could mean they will be entitled to the minimum wage.

Partners in a partnership can be independently self-employed and if so, will not qualify for the minimum wage. The same applies in the case of individual partners within a limited liability partnership.

Illegal workers may not be covered by the national minimum wage legislation. An illegal worker is either a migrant staying in the UK illegally, or someone who is here lawfully but working in breach of their conditions of stay.

Prisoners do not qualify for the national minimum wage in respect of any work performed under prison rules.

Unpaid work trial periods

As part of a recruitment process, an individual may be asked by a prospective employer to carry out tasks, without payment, to help the employer to decide whether the individual has the skills and qualities required for the job. Often this will be a legitimate practice, but some employers may use unpaid trial work periods to obtain work or services for which at least the minimum wage should be paid. Current law does not define a “trial work period” or state precisely when at least the minimum wage must be paid.

Where an employer asks an individual to carry out a ‘trial’, ‘test’ or ‘recruitment exercise’, the individual may nevertheless be a ‘worker’ and entitled to the minimum wage.

Whether a work trial results in a contract requiring the minimum wage to be paid will depend on the circumstances of the case. There are currently no definitive rules or tests; however, a court or tribunal is, in the government’s view, likely to take account of the following factors:
- whether a ‘work trial’ is genuinely for recruitment purposes (if it is not, it will generally be considered to be work and the individual will be eligible to be paid the minimum wage)
- whether the trial length exceeds the time that the employer would reasonably need to test the individual’s ability to carry out the job offered (in the government’s view an individual conducting work in a trial lasting longer than one day is likely to be entitled to the minimum wage in all but very exceptional circumstances)
- the extent to which the individual is observed while carrying out the tasks
- the nature of the tasks carried out by the individual and how closely these relate to the job offered (where the tasks are different from those which the job would involve, this may indicate that the employer is not genuinely looking to test the individual’s ability, but rather to get the tasks carried out)
- whether the tasks carried out have a value to the employer beyond testing the individual (where the tasks are carried out in a simulated rather than real environment, this will normally indicate that they do not have such a value and that the individual is not ‘working’)
- whether trial periods are important (aside from recruiting) to the way the employer runs its business (for example, where trial periods are being used by the employer as a means to reduce labour costs, this is likely to indicate that the individual is ‘working’)
There are reports of some unpaid trial work periods extending across more than one full shift or several days. Unpaid trials of this sort of length in a real (not simulated) work environment are likely to create an entitlement to minimum wage in all but very exceptional circumstances – especially in sectors where workers are paid at or close to the minimum wage. This is because what is done by the individual would almost certainly have substantial value to the employer rather than testing the individual’s ability. This could mean that there is a contract under which the individual would be a worker entitled to the minimum wage.

However, in some cases an unpaid trial work period lasting a few hours may be reasonable and not create an entitlement to minimum wage. This is because the main purpose would likely be to test the individual, and what is done would probably have little or no other value to the employer: the substance of the arrangement would therefore concern recruitment rather than providing work under a contract. The individual would therefore probably not be entitled to the minimum wage.

A key consideration is that the longer a trial period continues, the more likely it is that it results in a contract to provide work and that the minimum wage becomes due.

Ultimately, work trials have to be assessed on a case-by-case basis by HMRC enforcement officers and where necessary by courts and tribunals, taking account of the precise detail of the arrangements, including the duration and also what the worker is being asked to do. HMRC officers consider every complaint they receive and will take enforcement action where they consider workers are being exploited under the cover of recruitment.

NMW legislation permits a very limited number of exceptions for particular schemes which permit unpaid work trials. These include the government’s Work Trial scheme, which aims to help disadvantaged benefits claimants try work in a risk-free environment and which provides a job guarantee if both the jobseeker and the employer are satisfied following the trial.

The following hypothetical examples are intended to illustrate some of the factors outlined above and how, in the government’s view, these might be taken into account in particular circumstances. The facts of real cases will naturally be more complex. It is for HMRC enforcement officers, and ultimately for tribunals and courts, to decide whether the minimum wage should be paid in any particular case.

Example scenario 1: Likely to be a worker entitled to minimum wage

David is invited to undertake a trial work period in a new bar which has just opened along with 7 other members of bar staff, the majority of whom are also undertaking a trial work period. The bar has informed him and the other trial staff that they will work across shifts over a one-week period whilst management decide who is suitable to be offered a permanent role. Management do not yet know how many members of staff they are going to hire at the end of the one-week period.

This scenario is likely to entitle David to the minimum wage. The one-week period appears an excessive amount of time to test the skills which that person requires to perform the role. The work undertaken by him and other trial workers is clearly beneficial to the employer and cannot easily be distinguished from work undertaken by a paid member of staff. It is unclear how the trial period fits into the bar’s recruitment process given that the bar does not have a set number of positions to fill at the end of the process, but instead is still determining how many members of staff it will require.

Example scenario 2: Likely not to be a worker entitled to minimum wage

Aaliyah has responded to an advert in the window of a local café seeking an additional waiter to work on Saturdays. She is interviewed by the owner of the café during the week but before being offered the job, she is asked to come back on the Saturday and work for a trial period of 2 hours, during which the owner will keep an eye on how she interacts with customers and see how she gets on with the rest of the team, guiding her as necessary.

This scenario is unlikely to entitle Aaliyah to the minimum wage, assuming that the advert is genuine. A period of 2 hours is proportionate to the job on offer and to the owner’s need to check how she will deal with different customers and carry out other tasks. Although the working environment is real and what she does may have some other value to the owner, this is balanced by the need to observe her and the likelihood that it will take her a little time to settle in to the role. The main purpose appears to be to check that she has the ability to carry out the role.

Example scenario 3: Likely to be a worker entitled to minimum wage

Claudia has applied for a job as a warehouse operative in a supermarket warehouse. Before being considered for interview, she is asked to carry out a trial work shift of 8 hours, during which she is asked to move boxes of produce from shelving to the warehouse exit, for dispatch to nearby stores. Claudia is left to carry out this task on her own, although the warehouse foreman returns at the end of the shift to check the amount of produce that she has moved.

This scenario is likely to entitle Claudia to the minimum wage. Although perhaps a test of stamina, the length of the trial appears both excessive in time and too narrow in scope to check Claudia’s ability to carry out the role and, especially as she is not observed, the main purpose appears to be to help the supermarket dispatch its produce from the warehouse. The fact that she is asked to carry out this task before being considered for interview may also indicate that this is not a genuine recruitment process, but rather that the supermarket’s main aim is to benefit from free labour.

Example scenario 4: Likely not to be a worker entitled to minimum wage

Hicham has applied for a position as a Biology teacher at a school and is invited to an assessment day. The assessment day involves 2 short interviews in the morning and a written test. In the afternoon, he and another applicant are invited to teach 2 real classes in the school whilst being observed by a current member of staff. He and the other applicant are scored on their teaching in the afternoon which is tallied up with previous scores from the morning assessments to determine who should be hired.

This scenario is unlikely to entitle Hicham to the minimum wage. Although the teaching undertaken by that person is in a real class room environment, it is not for an excessive amount of time, but instead is for an amount of time which is proportionate to the need to test his teaching ability. There is limited benefit to the employer in the work undertaken by the individual, as the member of staff who he has covered and who would usually be teaching is instead observing and involved in the assessment process. The trial period is clearly part of the overall assessment process in an open and transparent manner.

Example scenario 5: Likely to be a worker entitled to minimum wage

Rosaria has applied for a job as a trainee chef in a kitchen. No prior experience is necessary, but the job would envisage that person developing a wide range of skills and, after 3 years, becoming the restaurant’s deputy head chef. She is asked to attend for a trial period between 12 noon and 12 midnight one Saturday. She is told that the trial needs to be on the restaurant’s busiest day as this will provide the best test of her ability to withstand the stresses and strains of kitchen work and his appetite to work unsocial hours. During the trial she is asked to chop and carry out simple preparation of vegetables, until 8pm when she is asked to load crockery into dishwashers. One of the chefs directs her and keeps an eye on her preparation of vegetables, but is not too concerned if the results are not up to scratch as they can always be used in the next day’s soup. At the end of the 12 hour trial she is invited to return for a formal interview on Monday.

This scenario is likely to entitle Rosaria to the minimum wage. Although the invitation to an interview appears to indicate that the recruitment is genuine and there is a degree of observation of her ability to carry out simple kitchen tasks, there is a limited relationship between the tasks that that person is asked to carry out and the much wider range of aptitudes and skills which she will need if offered the job. The length of the trial appears disproportionate and there are a number of indicators that the restaurant is using the trial period to cover what might otherwise be a labour shortage on its busiest day of the week.

Example scenario 6: Likely not to be a worker entitled to minimum wage

Mary has applied for a job as a head chef in a kitchen. She is asked to attend an assessment day with 4 other applicants. The assessment day takes place in a kitchen and involves all applicants cooking a range of dishes to be tried by the interviewing panel. The dishes are all meals which are served in the restaurant, but they are used for tasting purposes only rather than being served to paying customers.

This scenario is unlikely to entitle Mary to the minimum wage. A simulated environment which is only for a short amount of time is unlikely to attract the minimum wage, as the employer will not be gaining any tangible benefit other than being able to test the applicant’s skills. The individual is not providing ‘work’. It will usually be clear that simulated environments are part of a recruitment process.

Gig economy or platform-based workers

An individual’s entitlement to be paid at least the relevant minimum wage rate depends on whether or not they are a worker for minimum wage purposes. The first step in considering minimum wage eligibility is therefore always to consider the individual’s worker status.

See the government guidance on worker status (https://www.gov.uk/government/publications/employment-status-and-employment-rights) in the first instance, or Determining the status of a worker (#determining-the-status-of-a-worker).

Employers must determine which of the 4 different types of work apply to ensure that they are paying the worker in the correct way. See Working hours for which the minimum wage must be paid (https://www.gov.uk/guidance/calculating-the-minimum-wage/working-hours-for-which-the-minimum-wage-must-be-paid#types-of-work).

Where an individual is a worker and once the type of work has been established, employers must determine their worker’s working time for minimum wage purposes. See How to calculate the Minimum Wage (https://www.gov.uk/guidance/calculating-the-minimum-wage/calculating-the-minimum-wage).

When enforcing minimum wage regulations, HMRC will consider the specific working arrangements in place.

Multiple apps or platform-based systems

When an individual uses multiple apps or platform-based services simultaneously then the arrangements for each app/platform will need to be considered on an individual basis.

Consideration of working time for gig economy or platform-based workers
- the time a worker is obliged to log into an app/platform – if the employer prescribes or requires that a worker logs onto the app / platform at, and/or for, a specific time then the time logged on is likely to be working time
- the time a worker is required to be in a specific location – if the employer prescribes or requires the worker to be in a specific location or area (such as a town centre on a busy night) then the time the worker meets that requirement is likely to be working time
- the time a worker is performing duties for the employer – duties such as providing feedback, app / platform data maintenance or additional administrative requirements are likely to be working time
- the time a worker is waiting after accepting a job – waiting for customers to reach an agreed pickup point, waiting for a food order to be cooked or prepared, or providing assistance to customers requiring it are all likely to be working time
- the time a worker is travelling to a pickup point – once a job is accepted/allocated, the time the worker spends traveling to that starting point is likely to be working time
- the time a worker is delayed on their way to a pickup point – once a job is accepted / allocated and the worker is delayed on the way to a pickup point (e.g. if a car breaks down or the worker becomes stuck in traffic) then the time is likely to be working time until the point the job is cancelled or otherwise reallocated (whether by the worker, customer or employer)
- the time a worker is responsible for a customer or item – following on from the previous scenario, the time where the customer (or item) remains under the care of the worker then it is likely to be working time.
- the time the worker is carrying out a job for another app / platform – a worker might accept the closest job opportunity and therefore not be available for other more distant opportunities offered by other platforms. The period when a worker is engaged exclusively on a task on one platform is unlikely to be working time for other platforms
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