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

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