Interview - salary below minimum wage?

gigi7

Hello,

A friend of mine has been for an interview and has been offered a job (waiting for the contract to be sent through).

The job was advertised at £16000, but at the interview she was told it was £10000, the 16K being OTE (not mentioned at all on ad)

So, anyway, she doesn't know whether she will be taking it, but she does need a job. £10000, full time hours, that works out well below minimum wage?
The way I worked it out was 10000/52 = 192. Then 192/35=5.49.
Is that correct?

I know it makes no difference to me or her, unless she does take it, but it's quite a large company (retail) and I just don't understand how they could get away with it? The extra £5000 that can be earned in commission I suppose makes up to above NMW, but what if someone doesn't earn their commission? Even though the potential is there, it's still not guaranteed NMW.


Have I missed something here?
Thanks

Takeaway_Addict

Presuming she is 21+ if she doesn't hit target the employer needds to make it up to at least NMW per hour.

duchy

Have you calculated in that lunchbreaks will be unpaid ?

gigi7

Hello, thanks for the replies.

She is over 21, and the breaks have been taken into account, so the hours she would be paid for is 35.

I feel like I'm missing something, as it's a big company, and theyve also recruited a few months ago so thought someone would have picked up on this already? Hmmm.

amiehall

How do you know they don't make the wage up to NMW once the wage with OTE has been calculated each month?

They can arrange it however they want as long as NMW is paid in the end.

Takeaway_Addict

gigi7 wrote: »

Hello, thanks for the replies.

She is over 21, and the breaks have been taken into account, so the hours she would be paid for is 35.

I feel like I'm missing something, as it's a big company, and theyve also recruited a few months ago so thought someone would have picked up on this already? Hmmm.

As long as they make it up to NMW there is no issue. if its a large company I doubt they have to many people not making NMW.

gigi7

Hello,

I'm not sure about them making it up, they didn't mention that to her, they just said without commission its 10K. I know it's best for her to wait for the contract to come through before she makes the deciscion, but just thought I'd ask on here.

I've just never heard of anything like that before, if I've ever been in a similar role, the basic wage has always been atleast NMW and then the commision was the extra few grand a year on top, and any similar jobs I've seen advertised have said the same thing - the basic wage has never been below NMW.

Maybe they just employ strong sales people, who earn enough commssion, to not worry about being below NMW.

Thanks for the reply.

getmore4less

35 hours min wage would £11484.20 say £11500.

only need 25% of bonus target to meet the criteria

The key is to find out which method they use to calculate.

if hourly paid then it is min wage per pay cycle not the full year.

thye can't use an overpayment one cycle to subsiduse the next.

amiehall

Why would they mention being willing to make the wage up? It essentially means there's no bonus associated with the first quarter of the bonus target.

If, as you said, it's a large firm, they're unlikely to be paying under NMW. If she starts the job and finds she is actually paid under NMW, HMRC will investigate if she reports it.

Takeaway_Addict

getmore4less wrote: »

35 hours min wage would £11484.20 say £11500.

only need 25% of bonus target to meet the criteria

The key is to find out which method they use to calculate.

if hourly paid then it is min wage per pay cycle not the full year.

thye can't use an overpayment one cycle to subsiduse the next.

Interesting, where is the legal information on this?

Presumably if its monthly salary then its over the month?

gigi7

amiehall wrote: »

Why would they mention being willing to make the wage up? It essentially means there's no bonus associated with the first quarter of the bonus target.

If, as you said, it's a large firm, they're unlikely to be paying under NMW. If she starts the job and finds she is actually paid under NMW, HMRC will investigate if she reports it.

They have told her the first five weeks would include no targets, so just helping customers, learning the products etc. And they haven't mentioned that these 5 weeks would be paid any different, it would still just be around the 800 a month. If you see what I mean??

But anyway, I suppose the only way to know is to check the contract, but thought I'd find out if this was common, as have never come across it before and have done my fair share of job searching and interviews hehe .

Thanks for all the replies.