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Lack of Salary Increase, where does he stand...

pops5588
Posts: 638 Forumite
OH has been working for the same accountancy firm for just gone 6 years. He is on a training "contract", he completed his AAT in 2010 and is now over half way through his ACA (Chartered) accountancy qualification. He is the member of staff who has been there the longest, lots of people have come and gone.
He hasn't had a pay increase in 3 years, since he qualified with his AAT. They all have appraisals every year. On top of this, one of the managers (there were two) got sacked earlier this year and ever since OH has had all the responsibilities and work of that manager dumped on him. He is also being paid about £7,000 less than others of his age and at his level who are on training contracts.
It was verbally agreed that he would stay on for another couple of years after completing his ACA but last night he came home really upset (and he NEVER loses his rag) saying that he feels incredibly undervalued, unappreciated and is very unhappy. He was due to have his appraisal a month ago but his boss has been putting it off consistently which has really annoyed OH. If he is working up the courage to tell him he isn't going to get a pay rise again (despite being more qualified and valuable to the company now more than ever) OH wishes he would just get on and do it instead of putting it off.
Either way, he has said if he doesn't get a payrise of at least £1,000 he wants to walk. There is nothing in writing in terms of him having to stay, how is the best way to go about this? I've told him we really have to wait until the appraisal actually happens because until it does we won't know what we're dealing with. He could turn around and surprise us, although we doubt it.
Any advice would be hugely appreciated.
He hasn't had a pay increase in 3 years, since he qualified with his AAT. They all have appraisals every year. On top of this, one of the managers (there were two) got sacked earlier this year and ever since OH has had all the responsibilities and work of that manager dumped on him. He is also being paid about £7,000 less than others of his age and at his level who are on training contracts.
It was verbally agreed that he would stay on for another couple of years after completing his ACA but last night he came home really upset (and he NEVER loses his rag) saying that he feels incredibly undervalued, unappreciated and is very unhappy. He was due to have his appraisal a month ago but his boss has been putting it off consistently which has really annoyed OH. If he is working up the courage to tell him he isn't going to get a pay rise again (despite being more qualified and valuable to the company now more than ever) OH wishes he would just get on and do it instead of putting it off.
Either way, he has said if he doesn't get a payrise of at least £1,000 he wants to walk. There is nothing in writing in terms of him having to stay, how is the best way to go about this? I've told him we really have to wait until the appraisal actually happens because until it does we won't know what we're dealing with. He could turn around and surprise us, although we doubt it.
Any advice would be hugely appreciated.
First home purchased 09/08/2013
New job start date 24/03/2014
Life is slowly slotting into place :beer:
New job start date 24/03/2014
Life is slowly slotting into place :beer:
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Comments
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I am assuming that they pay for his qualifications, that's why he has to stay...
When it was verbally agreed that he stays after completion of his qualification, was there no agreement that there should be wage rises with passed exams, as he is more and more qualified?
In practice this is quite regular occurance.
He has no other option then to go in. I personally would not keep my side of the bargain if they didn't keep their side of bargain or were using me.
However bare in mind that an argument might come out of this and also it might effect getting good references.0 -
Has he actually asked for a pay rise?0
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I am assuming that they pay for his qualifications, that's why he has to stay...
When it was verbally agreed that he stays after completion of his qualification, was there no agreement that there should be wage rises with passed exams, as he is more and more qualified?
In practice this is quite regular occurance.
He has no other option then to go in. I personally would not keep my side of the bargain if they didn't keep their side of bargain or were using me.
However bare in mind that an argument might come out of this and also it might effect getting good references.
Yes they do pay for his qualifications, but as he is getting paid A LOT less than others at his level on this type of contract we do think that his boss has tried to manage it so that essentially it's as good as OH paying for his own tuition. I think there was an agreement of some kind in terms of payrises, but nothing in writing. His boss has always tried to blame recession/figures not prospering as much but it's a load of bull. OH has become more and more efficient (and speedy) at getting work done so jobs are taking less time and the charges that the clients pay have gone up, so the boss is pocketing all this extra money for himself. Obviously he has the right to do this, but surely he can't expect to keep his staff this way?!
To be honest it's mainly the fact that his boss clearly can't even be bothered to take the time to sit and do his appraisal anymore that has been the last straw.First home purchased 09/08/2013
New job start date 24/03/2014
Life is slowly slotting into place :beer:0 -
Has he actually asked for a pay rise?
I think the way his boss has carried out his appraisals, he kind of shot down even a suggestion of it before OH could even open his mouth. He kinda accepted it before because he was doing the same role and the same jobs. But this year is different as since the manager left he has taken on the work of the manager. More work, more responsibility, same pay.
However, if he has the appraisal and is told he isn't getting any extra money, does he have the right to go to his boss and ask for one flat out? He's been there since he was 18, it's the only "professional" job he has had so doesn't know what he is and isn't entitled to do.First home purchased 09/08/2013
New job start date 24/03/2014
Life is slowly slotting into place :beer:0 -
I think the way his boss has carried out his appraisals, he kind of shot down even a suggestion of it before OH could even open his mouth. He kinda accepted it before because he was doing the same role and the same jobs. But this year is different as since the manager left he has taken on the work of the manager. More work, more responsibility, same pay.
So when he was asked to do the work did he not say 'I'm going to need more money to take the work on'?Sanctimonious Veggie. GYO-er. Seed Saver. Get in.0 -
I think the way his boss has carried out his appraisals, he kind of shot down even a suggestion of it before OH could even open his mouth. He kinda accepted it before because he was doing the same role and the same jobs. But this year is different as since the manager left he has taken on the work of the manager. More work, more responsibility, same pay.
However, if he has the appraisal and is told he isn't getting any extra money, does he have the right to go to his boss and ask for one flat out? He's been there since he was 18, it's the only "professional" job he has had so doesn't know what he is and isn't entitled to do.0 -
Funky_Bold_Ribena wrote: »So when he was asked to do the work did he not say 'I'm going to need more money to take the work on'?
There is a kind of unwritten rule established that these things aren't to be discussed until it's appraisal time. But now it's appraisal time and his boss won't even give him one.First home purchased 09/08/2013
New job start date 24/03/2014
Life is slowly slotting into place :beer:0 -
He has a right to ask the boss whatever he wishes. They also have the right to refuse.
Of course. But I think he will look into leaving if he does, which he isn't sure he can despite the agreement/contract being verbal, not written.
I would hope that if it came to OH asking him, he would comply. He has chucked money at people previously when they've attempted to leave so the cash is obviously there. But then again maybe he has never been prepared to pay what OH is worth, I highly doubt he would suddenly be put on the salary of a chartered accountant once he is qualified. Maybe he wants rid so he doesn't have to fork out.First home purchased 09/08/2013
New job start date 24/03/2014
Life is slowly slotting into place :beer:0 -
OH has been working for the same accountancy firm for just gone 6 years. He is on a training "contract", he completed his AAT in 2010 and is now over half way through his ACA (Chartered) accountancy qualification.
So presumably he must repay training costs if he walks.He is the member of staff who has been there the longest, lots of people have come and gone.
Generally people change employers to get a pay rise, loyalty isn't rewarded in this line of work. Also very normal to leave after completing a training contract/at the point where fees no longer are repayable.He hasn't had a pay increase in 3 years, since he qualified with his AAT. They all have appraisals every year. On top of this, one of the managers (there were two) got sacked earlier this year and ever since OH has had all the responsibilities and work of that manager dumped on him. He is also being paid about £7,000 less than others of his age and at his level who are on training contracts.
What sort of firm does he work for? Sounds like a small one office one. Where have you got your figures from?It was verbally agreed that he would stay on for another couple of years after completing his ACA but last night he came home really upset (and he NEVER loses his rag) saying that he feels incredibly undervalued, unappreciated and is very unhappy.
Normal if you're in a training contract - the employee is tied in financially, so has very little power.Either way, he has said if he doesn't get a payrise of at least £1,000 he wants to walk. There is nothing in writing in terms of him having to stay, how is the best way to go about this? I've told him we really have to wait until the appraisal actually happens because until it does we won't know what we're dealing with. He could turn around and surprise us, although we doubt it.
Any advice would be hugely appreciated.
If he walks, how much does he need to pay back? He needs to read his contract and any company policies carefully.
If he leaves as a PQ ACA, it's a difficult market. He will want to complete his ACA, but he'll need an authorised training firm. That limits the number of potential employers who can take him on. Plus most employers prefer a blank canvas or a fully qualified accountant. It's very tricky for PQs.
Remember, walking with no job means no JSA.
He could switch to ACCA, but there's still a bit of snobbery out there, so going from ACA to ACCA wouldn't be a first choice.
Honestly? With only a year and a bit to go, I would advise sticking it out then leaving on qualification. His earning prospects will soar, and he'll be able to get a much more fulfilling job elsewhere. Short term pain, long term gain...0 -
So presumably he must repay training costs if he walks.
Generally people change employers to get a pay rise, loyalty isn't rewarded in this line of work. Also very normal to leave after completing a training contract/at the point where fees no longer are repayable.
What sort of firm does he work for? Sounds like a small one office one. Where have you got your figures from?
Normal if you're in a training contract - the employee is tied in financially, so has very little power.
If he walks, how much does he need to pay back? He needs to read his contract and any company policies carefully.
If he leaves as a PQ ACA, it's a difficult market. He will want to complete his ACA, but he'll need an authorised training firm. That limits the number of potential employers who can take him on. Plus most employers prefer a blank canvas or a fully qualified accountant. It's very tricky for PQs.
Remember, walking with no job means no JSA.
He could switch to ACCA, but there's still a bit of snobbery out there, so going from ACA to ACCA wouldn't be a first choice.
Honestly? With only a year and a bit to go, I would advise sticking it out then leaving on qualification. His earning prospects will soar, and he'll be able to get a much more fulfilling job elsewhere. Short term pain, long term gain...
Thanks for that. I am inclined to agree, he has already gone through much worse with the manager who ended up getting sacked so I hope he can muster the strength from somewhere to keep going if he doesn't get a payrise. Just tough to see him feeling so demoralised when he works so bloomin' hard.
It is a small firm, yes. Unfortunately there is no contract to read, hence the confusions. Any figures are from OH who has talked to others on the same course as him. And yes, like you say switching to ACCA isn't an option for him, he is aware of the snobberyFirst home purchased 09/08/2013
New job start date 24/03/2014
Life is slowly slotting into place :beer:0
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