Court of Appeal rules: long commutes don’t count for minimum wage

A recent Court of Appeal decision – HMRC v Taylors Services Ltd  [2025] EWCA Civ 956 – sheds important light on whether time spent travelling to and from assignments counts as “working time” for National Minimum Wage (NMW) purposes.

In this case, poultry workers were sometimes travelling up to eight hours a day on top of their shifts, collected by a minibus from home and dropped off directly at the farms where they worked. HMRC said those travel hours should count for NMW, landing the employer with a £62,000 underpayment notice. The workers had been paid just £2.50 an hour for their travel.

The Court of Appeal has now clarified that, under the current law, this type of travel is not “time work” for NMW purposes. And while the judges acknowledged the situation may feel unfair, they stressed that any change would need to come from Parliament, not the courts.

The Legal Issue

The case turned on two key provisions in the National Minimum Wage Regulations 2015:

• Regulation 30 defines “time work” in general.
• Regulation 34 says when travel counts as time work, but excludes ordinary commuting from home to a place of work.

The tribunal had initially sided with HMRC, saying the travel was time work under Reg 30, partly because of the employer’s control over the travel arrangements. But the Employment Appeal Tribunal (EAT), and now the Court of Appeal, disagreed. They held that travel of this kind only counts if it falls within the specific conditions of Reg 34 — which it didn’t here.

In other words: even long, employer‑mandated journeys from home to sites around the country won’t necessarily count towards the NMW.

What This Means for Employers

This ruling matters for any business that relies on staff travelling long distances to jobs — particularly where zero‑hours contracts or variable‑hour arrangements are in play.

While the judgment brings welcome clarity, it’s not a free pass. HMRC remains keen to scrutinise pay arrangements, and reputational risks around low pay are very real.

Key Takeaways for Employers

• Ordinary commuting (even if lengthy or employer‑arranged) generally doesn’t count as time work under the NMW Regulations.
• Travel time between assignments during the working day is different — that can count as time work under Reg 34, so NMW rates must apply.
• Employer control over the travel arrangements (e.g. setting pick‑up times and transport mode) doesn’t change the legal position unless the travel meets the Reg 34 criteria.
• Contracts should be crystal clear about what travel is and isn’t paid at NMW rates.
• Paying below NMW for travel time that is deemed time work risks enforcement action, arrears, and penalties.
• Zero‑hour and peripatetic roles carry particular risk — ensure your travel payment policies are legally robust.
• Be alive to reputational risk: even where the law permits paying less, public and press scrutiny may demand more.
• Watch this space: the Court flagged that any “anomaly” in the Regulations is for Parliament to fix. We may see changes in future.

Practical Tips for Employers

1. Map out travel time obligations

• Review how and when your staff travel for work.
• Identify which journeys are ordinary commuting (not usually paid) and which may count as “time work” (e.g. travel between assignments).

2. Audit your pay practices

• Check that any travel which qualifies as “time work” under the NMW Regulations is paid at or above the NMW.
• Don’t forget peripatetic or zero‑hours staff — they’re often the most at risk.

3. Communicate clearly with staff

• Spell out in contracts and policies whether (and how) travel time is paid.
• Being upfront reduces disputes and strengthens compliance.

4. Look beyond the legal minimum

• Even where the law doesn’t require NMW for travel, consider the reputational impact of long, unpaid journeys.
• Paying fairly can boost morale, retention and brand reputation.

5. Keep an eye on future changes

• The Court of Appeal flagged that Parliament may revisit these rules.
• Build flexibility into your contracts so you can adapt quickly if the law shifts.