The traditional boundaries between work and personal life have blurred significantly. Many employees are now engaging in tasks outside of their contracted hours, often without realising the potential implications for both their wellbeing and their employer’s compliance with the NMW rules.
This phenomenon, often referred to as “hidden working time,” has become normalised in various sectors, raising concerns for businesses regarding NMW compliance and the overall health of their workforce.
The Rise of Hidden Working Time
Remote working and flexible schedules have led to an increase in the number of employees completing work-related tasks during evenings and weekends. A simple act of checking emails can quickly escalate into hours of work, as employees find themselves entangled in urgent client communications or responding to colleagues’ messages. These seemingly innocuous tasks, such as reviewing rotas or completing health and safety training from home, have become part of the new work culture, making it difficult for employees to disconnect from their jobs. While some employees may feel empowered by this flexibility, the reality is that many are unknowingly falling into patterns of overwork. The pressure to be constantly available and responsive can lead to increased stress and burnout, ultimately affecting both individual wellbeing and overall productivity.
The NMW Compliance Risk
For employers, the normalisation of hidden working time presents a significant risk concerning NMW compliance. Businesses are legally required to ensure all employees, whether hourly paid or salaried, are compensated at least at the NMW rate for all hours worked. This requirement necessitates regular calculations which consider:
- the pay received in each pay period
- any deductions taken from the salary (excluding statutory deductions)
- the actual hours worked, not just contracted hours.
Unpaid working time is a leading cause of underpayments, and during an NMW investigation, HM Revenue and Customs (HMRC) will scrutinise a company’s records to assess compliance. If a business fails to maintain accurate evidence of actual hours worked, HMRC may interview current and former employees to establish a clearer picture of work patterns. They may also request computer data to identify any out-of-hours work performed. Interestingly, the risk of non-compliance isn’t limited to those earning close to the NMW rates. Employers who pay significantly above the NMW are also finding themselves in precarious situations.
The Impact on Employee Wellbeing
The implications of hidden working time extend beyond compliance risks; they also have a profound impact on employee wellbeing. The expectation to be constantly available can lead to increased stress, anxiety and a sense of being overwhelmed. Employees may feel guilty for taking time off or disconnecting from work, fearing they’ll fall behind or miss important communications. To combat these issues, employers must prioritise the wellbeing of their workforce. This can be achieved through:
Encouraging Work-life Balance
Employers should promote a culture that values work-life balance, encouraging employees to set boundaries around their working hours and take regular breaks.
Regular Check-ins
Managers should conduct regular check ins with their teams to discuss workloads and ensure employees feel supported in managing their tasks.
Training and Awareness
Providing training on time management and the importance of disconnecting from work can help employees recognise the signs of overwork and take proactive steps to protect their wellbeing.
Transparent Communication
Employers should foster an environment of open communication, where employees feel comfortable discussing their workloads and any challenges they may face in managing their time.
Monitoring and Compliance
Businesses must ensure they implement robust systems to track actual hours worked, resulting in compliance with NMW rules, while also safeguarding employee wellbeing.
As the lines between work and personal life continue to blur, the issue of working time creep presents both challenges and opportunities for employers. By recognising the risks associated with unpaid working time and prioritising employee wellbeing, businesses can create a healthier work environment that fosters productivity and compliance.
It’s essential for employers to remain vigilant in monitoring working hours and to support their employees in achieving a sustainable work-life balance. In doing so, they can mitigate risks and promote a culture of wellbeing which benefits both the organisation and its workforce.
One of the UK's foremost specialists in minimum wage compliance, Jeni provides unique insights and knowledge, supporting businesses to mitigate the financial and reputational impact of ongoing or pending HMRC NMW investigations.