Minimum wage and commission

mainy36

A friend of mine works as a hairdresser and I believe she is being treated unfairly. She is 20 years old and is getting paid £2.50 an hour officially. There is a commission policy where they get so much for achieving targets and selling products. This commission will be used to make the wages up to minimum wage £4.83 if the commission doesn't achieve this they will top up the remaining (so she will always get £4.83). Also for the last 6 months+ she has been paid £2.50 an hour with no top up to minimum wage is there anyway she can get back paid for this period?
She was working as a trainee stylist but is fully qualified and wasn't receiving any formal training at her salon (if this makes a difference).

Mudd14

Has she raised the issue that she has not recieved the top up to NMW with her employer?

This would be the first step, I would do it informally to start and if nothing happens write an official grievance.

Again if nothing happens a stronger letter stating you will have no option to report it to the NMW office maybe be worth while or just skip this and report them. The NMW will investigate and she will be due and underpayment in NMW back paid.

Zazen999

Has she got payslips to back this up or are they paying her in cash?

mainy36

Yes she has pay slips and a contract stating the pay is £2.50.
No she has not brought it up as she just let things like this go and doesn't complain as she is worried they will be upset with her. I expect they take advantage of a lot of young girls like this.

liney

Is she on an apprenticeship scheme? NMW not applicable.

robredz

mainy36 wrote: »

Yes she has pay slips and a contract stating the pay is £2.50.
No she has not brought it up as she just let things like this go and doesn't complain as she is worried they will be upset with her. I expect they take advantage of a lot of young girls like this.

This type of underpayment is endemic in hairdressing and catering, as the employers rely on ambiguities regarding such things as tips being used to top up lower than NMW wages. If you take this further the likelyhood of dismissal on whatever grouund is high. Perhaps asking ACAS for advice may be an option.

mainy36

Once whoever enforces NMW are aware a company is underpaying their employees will they not enforce it across the whole company and stop them re-offending?

liney wrote: »

Is she on an apprenticeship scheme? NMW not applicable.

No she works full time but is regarded as a trainee despite she is not having any training. After 19 NMW applies, irrelevant if you are an apprentice or not.

Kate78

This was supposed to have stopped in October 2009

CIPD Article - long and a bit boring but the relevant bit is about 3/4 of the way down

Apprenticeships are exempt from NMW - for the first year.

It's a bit ambiguous as the employer is referring to "commission" from selling styling products rather than straight tips.

The Employment Rights Helpline on 0800 917 2368 should be able to advise further.