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"However, if, in addition to being an office holder, you have a contract of employment with your company that spells out the terms of your employment, you are also both an employee and a worker and, as a result, entitled to all of the associated rights and benefits of employment."

The paragraph above is from this site's FAQs.

Does this mean that if the remuneration received as an office holder is say £5000 per annum and the employment contract states the working hours to be 37.5 hours per week (1950 hours per year) that the minimum that must be paid to the director is:

1950*National minimum wage of £5.52 = £10764.

ie: £5000 as office holder and £5764 for other duties.

If the time spent on other duties is quantifiable say 1500 hours would the minimum pay be 1500*5.52=8280+5000=13280?



Is there a time limit for making a claim under National minimum wage regulations?



Regards

In line with your quotation, company directors do not fall with the NMW legislation unless, in addition to their statutory office, they have a contract of employment. If they have such a contract, then their entitlement to the NMW depends on the terms of the contract.

The NMW legislation defines four different ways in which entitlement is assessed, depending on the contractual method of payment, namely, whether the worker is paid by the hour for all hours worked (called "time work"), or paid an annual salary for a defined number of hours but without overtime (called "salaried-hours" work), or paid piece rates (called "output work"), or paid without reference to anything (called "unmeasured work").

Company directors are commonly paid using the second or fourth of these methods. Before commenting further on the calculations you have included in your question, may I suggest that you read the DBERR's "detailed guide to the National Minimum Wage", available at http://www.berr.gov.uk/files/file11671.pdf, and see if your questions are answered there. If, after reading the relevant parts of the guide, you still need help, please come back to the Forum and let us know the problem that remains.

If an employer is in breach of the NMW, the worker does not have to make a claim to a tribunal. The complaint can be made through HM Revenue and Customs and it will be taken up from there. The Guide provides information on the procedures.