If you have employees who travel for work purposes, the type of pay they get depends on the terms of their employment. This can be at National Minimum Wage (NMW), at the employee’s usual hourly rate, a specific travel rate clearly defined in their contract, time off in lieu (must still meet NMW and Working Time Regulation (WTR)) and/or expenses.
Not all travel time is the same
As an employer you must understand the distinct types of work travel and what counts as working time. And remember, getting this wrong can lead to underpayment, employee grievances, and enforcement action from HMRC.
Travel during the working day
If you instruct employees to visit multiple clients, attend other work sites, or attend training at other premises, during their working day, then you must pay then for their travel under UK law if they are paid an hourly rate. And if an employee is required to stop at the office first before travelling onwards to an assignment, then you must pay them for the time it takes them to get from the office to the assignment and back.
In addition if an employee performs work duties like emails, calls, setup etc while travelling they must also be paid. Because the time when a worker is travelling for the purpose of working (i.e. in connection with their employment) is treated as working time. Again this is if an employee is paid an hourly rate.
No Fixed Place of Work
If you have employees with no fixed place of work like care workers, delivery drivers, engineers or field based staff, you must acknowledge the fact that travelling is an integral part of their role and is not classed as ordinary commuting. So travel from their home to their first assignment of the day and travel from their last assignment back home often counts as working time.
Ordinary Commuting
Travel time does not count for NMW when it is classed as an ordinary commute, i.e. a regular journey from an employee’s home to their usual place of work (office, factory etc) and back home again. Even if the commute is long, inconvenient or expensive, the time does not need to be paid.
Key Considerations for Employers
- When travel time counts as working time, the pay an employee gets depends on the terms of their employment contract and your companies’ policies. You must check they are up-to-date and clear so that normal working locations are specified and any roles which require travel are highlighted in order to ensure compliance and avoid any disputes.
- When calculating pay you must follow the law on the NMW. The NMW regulations require employers to pay the NMW for all hours worked including any/all travel between job sites and travel for job-related duties. Make sure you check the NMW calculations regularly for employees where travelling is an integral part of their role.
- Paying travel expenses (such as mileage or public transport costs) is different from paying for travel time as expenses only reimburse costs. You can fully reimburse expenses and still be in breach of NMW if the time spent travelling is unpaid.
- Ensure that your systems record travel time accurately and that you are paying for travel time between client visits, as well as the contact time with clients.
How we I help?
Navigating NMW compliance (and WTR compliance) can be challenging and the issue of travel time is a common risk area. To ensure compliance we would advise a review of any employment documentation to ensure all contracts, policies and procedures are clear and well communicated. With significant employment law changes happening all the time, we can help you to stay on the right side of the law, for help, advice and support please get in touch with caroline.robertson@actifhr.co.uk