Reducing Working Hours After the Minimum Wage Increases

If the minimum wage (MW) increases - can an employer lawfully reduce an employee's working hours?

The answer to this question will depend on whether the working hours are contractual or non-contractual¹.

The 2nd Schedule of the Minimum Wage (National and Sectoral Minimum Wage) Order 2026 states that - 

"For the avoidance of doubt, this Order does not affect the normal working hours of Security Guards"

There is no statutory definition of normal working hours in the MW legislation. However, such a definition can be found in the Employment Rights Act 2012 (ERA). Section 13(3) of the ERA states that - 

“The expression “normal working hours”, in relation to an employee, means those hours which are stated in his contract of employment to be his normal working hours”.

For example, if a contract of employment states that an employee’s normal working hours are 40 hours per week. But the employee usually works 60 hours per week (i.e. 40 hours plus 20 overtime hours). The employer may lawfully reduce or remove the overtime hours without the agreement of the employee or a recognised trade union - if the overtime is non-contractual.

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1. The terms of employment are usually contractual and non-contractual. Whether a term is contractual or non-contractual may depend on how the term is written, e.g. a bonus or overtime may be contractual or non-contractual. If a term (e.g. normal working hours or rate of pay) is contractual - it can only be lawfully changed with the agreement of an employee or a recognised trade union (RTU). If a term is non-contractual - an employer may change or remove the term without the agreement of an employee or a RTU. It may be implied that an unwritten term (e.g. a bonus or overtime) is contractual via custom and practice.