By Paul Chappell

11th June 2025

National Minimum Wage and sleep-in shifts – understanding workers’ rights

The complex relationship between sleep-in shifts and the National Minimum Wage

In certain sectors, many essential workers provide round-the-clock care in roles that include “sleep-in shifts”. These are periods where they must remain on-site overnight but can sleep when not actively working.

Care workers, support staff in residential homes, and night security personnel frequently work under these arrangements. But a critical question remains: should sleep-in shift workers receive the national minimum wage for these hours, even when they’re allowed to sleep?

The legal situation

The legal treatment of sleep-in shifts regarding minimum wage has evolved significantly over time. Several landmark court cases have shaped today’s understanding, the Mencap v Tomlinson-Blake case being the latest and the one that sets the ruling for NMW and sleep-in.

Royal Mencap Society v Tomlinson-Blake (2021) marked a pivotal moment when the UK Supreme Court ruled that sleep-in care workers were only entitled to the national minimum wage for hours they were awake and working, not for hours spent sleeping. This reversed previous lower court decisions that had ruled in favour of workers receiving minimum wage for their entire shift.

The worker’s perspective

For many sleep-in shift workers, the reality is challenging:

They cannot leave the premises during their shift
Their personal time is restricted
They may experience disrupted sleep
They bear significant responsibility for vulnerable individuals
Their home life and work-life boundaries become blurred

Many workers argue that being required to be present, regardless of whether they’re actively working, constitutes work that deserves fair compensation at minimum wage rates, a view not shared by the Supreme Court.

The employer’s viewpoint

Employers, particularly in the care sector, often operate with tight budgets and funding constraints. They argue:

Sleep-in shifts are fundamentally different from active work
Paying minimum wage for all hours would make services financially unsustainable
Alternative compensation models (like flat-rate payments) are more appropriate
Increased wage costs would ultimately be passed on to care recipients or taxpayers

Finding a balance

Several approaches may help balance worker rights with financial realities:

Sector-specific funding – Governments could provide targeted funding to ensure care providers can pay fair wages while maintaining service quality
Hybrid payment models – Systems that pay a base rate for sleep-in hours with enhanced rates for active work periods
Clear contractual terms – Transparent agreements that specify exactly how sleep-in shifts will be compensated
Technology solutions – Using monitoring systems that accurately track active working time during overnight shifts
Regulatory clarity – This has now been set by the Supreme Court and should put to bed how sleep-in shifts are dealt with for NMW purposes.

The intersection of national minimum wage laws and sleep-in shifts remains complex. While recent legal decisions have provided clarity, the debate continues about what constitutes fair compensation for workers who must remain on-site overnight.

Unless the Government legislate differently, we now have the definitive answer to the NMW and sleep-in shifts payments.

Want to learn more or ease the burden with a outsourced payroll provider? Speak to the Ascend Payroll team today for a free no obligation quotation

Author

Paul Chappell
Paul started his career at the Inland Revenue, now HMRC, where he spent 14 years as a Tax Inspector, Employer Compliance & VAT Manager and PAYE Auditor. It gave him an inside view of how HMRC thinks and what it looks for when it comes knocking.
He then spent 11 years at a regional accountancy practice, advising clients on tax and guiding them through HMRC investigations from the other side of the table.
From there, it was a natural step into payroll. Paul took on a Compliance and Legislation role at an award-winning payroll provider, where he made sure processes were watertight and payroll teams were fully trained on every change.
After a short break, he was tempted back and joined Ascend as Head of Legislation and Compliance in November 2024.
Paul's focus is on keeping Ascend and its clients on the right side of the rules. He tracks new legislation as it lands, turns it into clear guidance for the team and writes many of Ascend's plain-English articles and guides.
For Paul, good compliance is about getting ahead of change.
"Employment law and payroll legislation are changing faster than I've seen in my whole career. The businesses that cope best are the ones that prepare early, long before a new rule becomes a deadline.
My job is to take the complicated stuff and make it simple, so our team and our clients know exactly what's changing, what it means for them and what they need to do about it."
That's the approach he brings to every update: spot what's coming, explain it clearly and make sure no client is caught out.
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Paul is Ascend's Head of Legislation and Compliance, with over 30 years of experience in tax and payroll, including a decade as a HMRC Tax Inspector. He leads on compliance, keeping the team and clients up to speed with the latest and future changes. When our clients have a specific challenge or complex query, Paul is the man to sort it out.
everything PAYE, tax, National Insurance, pensions, keeping Ascend's team and clients one step ahead of every legislative change.

Frequently asked questions related to this blog

What is a sleep-in shift and who typically works them?

A sleep-in shift is a period where a worker must remain on-site overnight but can sleep when not actively working. Care workers, support staff in residential homes, and night security personnel frequently work under these arrangements. The question employers and workers keep coming back to is whether sleep-in shift workers should receive the National Minimum Wage for those hours, even when they are allowed to sleep.

What does the law say about National Minimum Wage and sleep-in shifts?

The legal position has evolved through several landmark court cases, with Royal Mencap Society v Tomlinson-Blake (2021) being the definitive ruling. The UK Supreme Court decided that sleep-in care workers are only entitled to the National Minimum Wage for hours they are awake and working, not for hours spent sleeping. This reversed previous lower court decisions that had ruled in favour of workers receiving minimum wage for their entire shift. Unless the government legislates differently, this is the definitive answer for NMW and sleep-in shift payments.

Why do workers argue they should be paid minimum wage for the full sleep-in shift?

For many sleep-in shift workers, the reality is challenging. They cannot leave the premises during their shift, their personal time is restricted, they may experience disrupted sleep, and they bear significant responsibility for vulnerable individuals. Home life and work-life boundaries become blurred. Many workers argue that being required to be present, regardless of whether they are actively working, constitutes work that deserves fair compensation at minimum wage rates. That view is not shared by the Supreme Court.

Why do employers argue against paying minimum wage for all sleep-in hours?

Employers, particularly in the care sector, often operate with tight budgets and funding constraints. They argue that sleep-in shifts are fundamentally different from active work, that paying minimum wage for all hours would make services financially unsustainable, and that alternative compensation models such as flat-rate payments are more appropriate. Increased wage costs would ultimately be passed on to care recipients or taxpayers.

How can employers balance worker rights with financial realities on sleep-in shifts?

Several approaches may help. Sector-specific funding from government could ensure care providers can pay fair wages while maintaining service quality. Hybrid payment models can pay a base rate for sleep-in hours with enhanced rates for active work periods. Clear contractual terms should specify exactly how sleep-in shifts will be compensated. Technology solutions such as monitoring systems can accurately track active working time during overnight shifts. The Supreme Court ruling has now provided regulatory clarity on how sleep-in shifts should be treated for NMW purposes, though the wider debate about fair compensation continues.

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About the Author

Paul is Ascend’s Head of Legislation and Compliance, with over 30 years of experience in tax and payroll, including a decade as a HMRC Tax Inspector. He leads on compliance, keeping the team and clients up to speed with the latest and future changes. When our clients have a specific challenge or complex query, Paul is the man to sort it out. everything PAYE, tax, National Insurance, pensions, keeping Ascend’s team and clients one step ahead of every legislative change.

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