# How to design on-call and standby pay

> Design on-call and standby pay: working time and minimum wage rules, standby and call-out payments, weekend rates and the 2027 shift rights.

Source: https://lumihr.co.uk/guides/how-to-design-on-call-standby-pay
Author: David Whitfield (https://lumihr.co.uk/about/david-whitfield)
UK law as at: 20 September 2026
Review by: 1 April 2027

---
*By David Whitfield · Reflects UK law as at 20 September 2026 · Review by 1 April 2027*

> **In short**
> - On-call time at the workplace is working time. Standby elsewhere usually isn't, unless you tightly control where the worker is and what they do.
> - The minimum wage isn't due for standby at home. On-call allowances don't count towards it unless consolidated.
> - In the lumi reward benchmark, 34.2% of organisations pay the on-call allowance per day (n = 149).
> - Guaranteed hours and shift notice rights for zero- and low-hours workers are expected in 2027.
> - By the end you will have a standby structure, call-out rules and a costed rota.

## Before you start

**Legal basis.** The Working Time Regulations 1998 [2], the National Minimum Wage Regulations 2015 [6], and sections 1 to 4 of the Employment Rights Act 2025, not yet in force [11]. This guide covers England, Wales and Scotland.

**Who is involved.** Reward, HR, payroll, finance, rota managers, and representatives where terms are collectively agreed.

**What you need:** rotas; a call-out log (time, length, remote or on site); contracts; pay rates near the minimum wage; and a list of zero- and low-hours workers.

## Step 1: Map where you need cover

List each service that needs cover outside normal hours. In the lumi reward benchmark ([full findings](/research/overtime-shift-on-call-2026)), 45.1% of organisations run no on-call or standby rota; 34.1% run one in IT / Technology and 31.4% in Engineering & Maintenance (n = 264, more than one answer allowed).

**◆ Decision: standby or rostered shifts.** For extended-hours IT cover, on-call standby only is common (24.4%) and rostered shifts are an alternative (21.6%) (n = 250).
- *Standby:* cheaper when calls are few, but rest is broken and working time needs care.
- *Rostered shifts:* predictable, clearly working time. 96.8% of organisations pay shift premiums for unsocial hours (n = 218). Costly when nights are quiet.

## Step 2: Set the standby rules and protect rest

Working time is any period when the worker is working, at the employer's disposal and carrying out their duties [2]. GOV.UK counts time on call at the workplace, but not away from it [3]. Acas adds that standby elsewhere is more likely to count the more control the employer has over the worker's activities, location and time [4]. In *Truslove v Scottish Ambulance Service*, paramedics who had to stay within 3 miles of their station, with a 3-minute response target, were held to be working while on standby [5].

Call-out time counts towards the 48-hour weekly limit, normally averaged over 17 weeks unless the worker opts out in writing [3][4]. Workers also need a 20-minute break when working more than 6 hours a day, 11 hours' rest between working days, and 24 hours' rest a week or 48 a fortnight. Under-18s get more [10]. Where an exception applies, such as some shift work, give compensatory rest instead [2][10]. Set a rule for rest after night call-outs.

**◆ Decision: response and location rules.**
- *Tight* (on site, or a set distance and minutes to respond): faster response, but standby is more likely to be working time.
- *Looser* (respond remotely within a longer window): less likely to be working time, but slower.

## Step 3: Check the minimum wage

Minimum wage hours include time working on a call-out, and time the worker is required to be available at or near a place of work, unless at home [6][7]. For sleep-ins, only hours awake for the purposes of working count, where suitable sleeping facilities are provided [6]. The Supreme Court confirmed this in *Royal Mencap Society v Tomlinson-Blake* [8].

On-call allowances don't count towards minimum wage pay unless consolidated or related to performance. Nor does the premium element of overtime or shift pay [7]. From 1 April 2026 the rates are £12.71 an hour at 21 and over, £10.85 at 18 to 20, and £8.00 for under-18s and apprentices [9]. Check lower-paid staff each pay reference period.

## Step 4: ◆ Choose the standby payment structure

In the lumi reward benchmark, paying the on-call allowance per day is common (34.2%) and per call-out only is an alternative (30.9%). A flat amount per period (18.8%) and a combination (16.1%) are rare (n = 149). For IT / Technology standby, a percentage of salary is common (22.7%) (n = 88). For Engineering & Maintenance, a flat weekly retainer is common (31.2%) (n = 80). Where relevant, one framework across all functions is common (41.0%) (n = 78).

**◆ Decision: the unit of payment.**
- *Per day, night or session:* follows the rota and swaps, but adds payroll entries.
- *Flat per week:* simple, but awkward for single-night swaps.
- *Percentage of salary:* moves with pay reviews, but pays senior staff more for the same restriction.
- *Per call-out only:* costs only when used, but availability goes unpaid.
- *One framework or function-specific terms:* consistency, or a closer fit with each function's call pattern.

A rare answer is not a wrong one.

## Step 5: ◆ Set call-out minimums

Employers don't have to pay for overtime, but average pay for all hours worked must not fall below the minimum wage [12]. In the lumi reward benchmark, a 2-hour minimum call-out payment is common (36.2%). 3 hours or more (26.8%) and 1 hour (23.5%) are alternatives, and no minimum is rare (13.4%) (n = 149).

**◆ Decision: the minimum.**
- *Longer:* recognises disruption and travel, but pays the same for a 10-minute remote fix.
- *Shorter or none:* pays for time worked, with less for broken sleep.
- *Separate remote and on-site minimums:* closer to effort, but needs a rule for repeat calls.
- *Time off in lieu instead of pay:* protects rest, but is hard to schedule in small teams.

## Step 6: ◆ Decide weekend and bank holiday rates

In the lumi reward benchmark, 46.3% of organisations use one standby rate for every period, and 28.4% pay more for bank holidays (n = 95, more than one answer allowed). For a weekend night, the same rate as a weeknight is common (40.6%) and 28.9% (15.2% + 7.2% + 3.6% + 2.9%) pay more (n = 138).

**◆ Decision: one rate or bands.**
- *One rate:* simple, and swaps don't change pay, but a bank holiday pays the same as a quiet weeknight.
- *Bands:* reflect the intrusion on free time, but add payroll rules.

## Step 7: Cost the rota and set its frequency

This example uses **illustrative** rates, not lumi data.

```python
## Illustrative rates only: not lumi data and not a recommendation.
NIGHT = 25.00                                # weeknight standby (£)
X = {"weeknight": 1.0, "weekend_day": 1.0,
     "weekend_night": 1.5, "bank_holiday": 2.0}  # multiple of NIGHT
HOURLY, CALLOUT_X, MIN_H = 22.00, 1.5, 2.0   # call-out terms

def week_cost(periods, calls):
    standby = sum(n * NIGHT * X[p] for p, n in periods.items())
    paid_h = sum(max(h, MIN_H) for h in calls)
    return standby, paid_h, standby + paid_h * HOURLY * CALLOUT_X

calls = [0.5, 1.25, 3.0]                     # hours worked per call-out
normal = {"weeknight": 5, "weekend_day": 2, "weekend_night": 2}
bank_hol = {"weeknight": 4, "weekend_day": 2, "weekend_night": 2,
            "bank_holiday": 2}               # Monday day and night
print(sum(calls), week_cost(normal, calls), week_cost(bank_hol, calls))
weekly = week_cost(normal, calls)[2]
print(52 * weekly, round(52 / 4 * weekly, 2), round(52 / 6 * weekly, 2))
```

**Result:**
- Normal week: standby £250.00 plus 7 paid call-out hours, **£481.00**. Bank holiday week: **£556.00**.
- Hours worked: 4.75. Record these, not the paid hours, for working time and rest.
- 52 normal weeks: **£25,012.00**, or £6,253.00 a person on a 1-in-4 rota and £4,168.67 on 1-in-6.

**◆ Decision: rota frequency.** Rota size changes each person's share, not the cost of cover.
- *Fewer people:* more pay and practice each, but more disruption and pressure on rest.
- *More people:* a lighter load, but skills are used less often.

Costs exclude employer on-costs. Holiday pay for the 4 weeks of regulation 13 leave includes payments intrinsically linked to the worker's tasks and other payments, such as overtime, regularly paid in the previous 52 weeks [2]. Check whether yours qualify. Acas says the contract should state whether on-call time at home is paid [4].

## Step 8: Prepare variable-hours staff for the 2027 rights

The Employment Rights Act 2025 adds three rights, with equivalents for agency workers [11]:
- **Guaranteed hours.** Qualifying zero- and low-hours workers must be offered hours reflecting those worked over a reference period. They can refuse.
- **Reasonable notice** of shifts and changes.
- **Payment for shifts cancelled, moved or curtailed at short notice.** Regulations will set short notice, at no more than 7 days, and the payment, at no more than the worker would have earned.

The Department for Business and Trade consulted until 25 August 2026 [13], and the government's timeline puts the rights in 2027 [14].

In the lumi reward benchmark, not offering zero- or low-hours workers guaranteed hours reflecting average hours is common (44.2%) (n = 120). Not paying hourly workers for shifts cancelled at short notice is common (46.1%) (n = 219).

**◆ Decision: timing.**
- *Act now:* tests systems early, but terms may need changing once regulations appear.
- *Wait:* no rework, but less time to change rostering and payroll.

Either way, list those workers and pull their hours history.

## Checklist

- [ ] Cover needs mapped; standby or shifts chosen
- [ ] Response and location rules set; working time assessed
- [ ] Call-out hours recorded; rest rule after night call-outs agreed
- [ ] Minimum wage checked, excluding on-call allowances
- [ ] Standby payment unit and call-out minimum set
- [ ] Weekend and bank holiday rates decided
- [ ] Rota costed, including holiday pay
- [ ] Contracts updated; variable-hours workers listed

## FAQ

**Does on-call time count as working time?**
At the workplace, yes. Elsewhere, usually not, unless the employer tightly controls the worker's activities, location and time.

**Is the minimum wage due for standby at home?**
No. It is due for call-out work and for time required to be available at or near the workplace.

**Are sleep-in shifts paid at the minimum wage?**
Only for hours awake for the purposes of working, where suitable sleeping facilities are provided.

**Is there a legal minimum call-out payment?**
No, but pay for all hours worked must meet the minimum wage. In the lumi reward benchmark, a 2-hour minimum is common (36.2%, n = 149).

## Related

- [Overtime, shift and on-call pay: UK benchmark 2026](/research/overtime-shift-on-call-2026) — the benchmark findings behind the figures in this guide.
- [How to calculate holiday pay for irregular-hours and part-year workers](/guides/how-to-calculate-holiday-pay-irregular-hours)
- [How to calculate statutory redundancy pay (2026/27)](/guides/how-to-calculate-statutory-redundancy-pay)
- [How lumi works: methodology](/methodology) — how these figures are collected and calculated.

## Sources

1. lumi reward benchmark, collection window 2026 H1, national figures: [full findings](/research/overtime-shift-on-call-2026)
2. legislation.gov.uk, *The Working Time Regulations 1998*, SI 1998/1833, regs 2, 16 and 21. https://www.legislation.gov.uk/uksi/1998/1833/regulation/2
3. GOV.UK, *Maximum weekly working hours* (accessed 20 September 2026). https://www.gov.uk/maximum-weekly-working-hours
4. Acas, *Being on call: working time rules* (updated 21 March 2025). https://www.acas.org.uk/working-time-rules/employees-who-are-on-call-or-sleep-in
5. Employment Appeal Tribunal, *Truslove and Wood v Scottish Ambulance Service*, UKEATS/0053/13/JW (8 April 2014). https://www.gov.uk/employment-appeal-tribunal-decisions/1-mr-paul-truslove-2-miss-ellouise-wood-v-scottish-ambulance-service-ukeats-0053-13-jw
6. legislation.gov.uk, *The National Minimum Wage Regulations 2015*, SI 2015/621, reg 32. https://www.legislation.gov.uk/uksi/2015/621/regulation/32
7. GOV.UK, *Calculating the minimum wage* (updated 6 January 2026). https://www.gov.uk/guidance/calculating-the-minimum-wage
8. UK Supreme Court, *Royal Mencap Society v Tomlinson-Blake* [2021] UKSC 8 (19 March 2021). https://supremecourt.uk/cases/uksc-2018-0160
9. HMRC, *Rates and thresholds for employers 2026 to 2027* (updated 1 September 2026). https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
10. GOV.UK, *Rest breaks at work* (accessed 20 September 2026). https://www.gov.uk/rest-breaks-work
11. legislation.gov.uk, *Employment Rights Act 2025*, ss.1 to 4. https://www.legislation.gov.uk/ukpga/2025/36/contents
12. GOV.UK, *Overtime: your rights* (accessed 20 September 2026). https://www.gov.uk/overtime-your-rights
13. Department for Business and Trade, *Make Work Pay: ending one-sided flexibility – reforms of zero hours and similar contracts* (consultation, 2 June to 25 August 2026). https://www.gov.uk/government/consultations/make-work-pay-ending-one-sided-flexibility-reforms-of-zero-hours-and-similar-contracts
14. GOV.UK, *Plan to Make Work Pay and Employment Rights Act: timeline update* (updated 25 August 2026). https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act/plan-to-make-work-pay-and-employment-rights-act-timeline-update

*This guide is general information about UK employment law and practice as at the date shown. It is not legal advice. Take advice on your own circumstances.*

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