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Directors of Limited Companies do not necessarily have to receive the National Minimum Wage unless they have an employment contract.

An employee who becomes a director is likely to have an employment contract.

In the event of doubt please take legal advice, but the following extract from the dti official guidance (para 22 of 'A detailed guide to the National Minimum Wage ') may be helpful -

The national minimum wage does not apply to company directors unless they have contracts which make them ‘workers’. Company directors are classed as ‘office holders’ in common law and can do work and be paid for it in that capacity. This is true no matter what sort of work is done or how it is rewarded. So, it is unlikely that a director will have an implied contract which makes him a worker. However, company directors who have employment contracts will need to be paid the national minimum wage. If a company director is unsure whether he has entered into an employment contract with his company he may wish to take legal advice.

See also Employment Status, Contract of Employment, PAYE, NIC, NMW, SSP, SMP, SPP, SAP, Student Loans.

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