Being paid below minimum wage?

24

Comments

  • TELLIT01
    TELLIT01 Posts: 16,374
    First Anniversary First Post Name Dropper PPI Party Pooper
    Forumite
    Pricivius wrote: »
    I'm confused! If she receives £20 per day and works 5 days a week, how is she only receiving £350 per month? She should be getting £433 per month or thereabouts (£20 X 5 days = £100, £100 X 52 weeks = £5,200, £5,200 / 12 months = £433.33).


    How is the £350 broken down on her payslip?


    Edited to add: that might explain where they have gone wrong. If they calculate £20 X 5 days = £100, £100 X 41 weeks = ££4,100, £4,100 / 12 months = £341.66 - is this what she is receiving? If so, it looks as though they have made a mistake by only paying her for 41 weeks when they are supposed to be spreading it out over 52 weeks.

    Interesting observation and that would make the payment she's getting something much nearer what it should be. She is certainly receiving close to that £341.66 figure, but I won't see her for a couple of weeks now to confirm the exact figure.
    What I'm still having difficulty with is working out if she would be in receipt of minimum wage even with that situation.
  • getmore4less
    getmore4less Posts: 46,882
    Name Dropper First Anniversary First Post I've helped Parliament
    Forumite
    Annual paid hours inc holiday should be 3.5*5*(41+4.95). Using a 52week year.
  • pmlindyloo
    pmlindyloo Posts: 13,049
    Name Dropper First Anniversary First Post
    Forumite
    TELLIT01 wrote: »
    No she's not s/e. She is definitely an employee.

    How do you know this?

    A pay slip does not necessarily indicate she is an employee. The employer may be issuing one as matter of keeping records.

    She needs to look at a contract. Has she asked for one?

    And have you asked if she can substitute another person to do her job?

    I may be totally wrong here but have seen a very similar situation.
  • TELLIT01
    TELLIT01 Posts: 16,374
    First Anniversary First Post Name Dropper PPI Party Pooper
    Forumite
    pmlindyloo wrote: »
    How do you know this?

    A pay slip does not necessarily indicate she is an employee. The employer may be issuing one as matter of keeping records.

    She needs to look at a contract. Has she asked for one?

    And have you asked if she can substitute another person to do her job?

    I may be totally wrong here but have seen a very similar situation.

    She can't substitute another person to do her job. She is definitely an employee. They were originally deducting tax and NI until it became clear earnings were below threshold and they provide her with a P60
  • nicechap
    nicechap Posts: 2,852
    Name Dropper First Anniversary First Post
    Forumite
    The P60 will have her annual salary on it. From it you can work backwards to calculate actual hourly rate taking account of holiday pay entitlement too.

    She can then put that into a letter to her employer setting out what she has been paid and what she should be paid. Depending on employer's response will determine her next moves.
    Originally Posted by shortcrust
    "Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."
  • pmlindyloo
    pmlindyloo Posts: 13,049
    Name Dropper First Anniversary First Post
    Forumite
    TELLIT01 wrote: »
    She can't substitute another person to do her job. She is definitely an employee. They were originally deducting tax and NI until it became clear earnings were below threshold and they provide her with a P60

    Didn't know about the previous tax and NI deductions so definitely an employee - sorry, but worth a try!

    I am also wondering whether the 41 weeks are right. I thought it was 39 weeks for schools?

    Then it might make sense,
    £20 x 5 = £100
    £100 x 39 = £3900
    £3900/12 = £325

    Having said that it needs to be checked about holiday pay/sick pay - has she been off for more than 3 days in a row re: sick pay.
  • TBagpuss
    TBagpuss Posts: 11,198
    First Post First Anniversary Name Dropper
    Forumite
    I think your original calculation is broadly correct. At NMW she should get £7.50 per hour.
    so £7.50 x 3.5 hrs = £26.35 per day
    £26.35 x 5 = £131.25 per week
    £13.24 x 41 weeks = £5,381.25 per year
    Divide by 12 months would be £448.44 per calendar month.


    If they are actually paying her £20 per day year round that would work out at £5,200, so they would be underpaying by about £181 a year (not including any holiday provision)

    Has she used the calculator to check ? https://www.gov.uk/am-i-getting-minimum-wage She coul also contact ACAS for advice.
    Rates go up in April so she should chekc again then.
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • nicechap

    There's nowhere on a P60 to show "annual salary", it merely shows what taxable pay you have earned in a particular tax year.

    For plenty of people it will actually understate their real salary, for example someone who earned £20,000 but contributed 10% into a company pension will have a P60 which shows pay of £18,000.
  • nicechap
    nicechap Posts: 2,852
    Name Dropper First Anniversary First Post
    Forumite
    nicechap

    There's nowhere on a P60 to show "annual salary", it merely shows what taxable pay you have earned in a particular tax year.

    For plenty of people it will actually understate their real salary, for example someone who earned £20,000 but contributed 10% into a company pension will have a P60 which shows pay of £18,000.

    Thank you, do you think in this instance it will show their annual salary given the figures and point above?
    Originally Posted by shortcrust
    "Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."
  • Its not impossible but although the op seems to refer to a pretty standard work routine I think it's unlikely to as it only takes one very minor discrepancy to mean it isn't the annual salary.

    Getting paid for an extra couple of hours one week or any unpaid absence would immediately mean the P60 didn't reflect a perfect annual salary.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards