Hourly Rates below the Living Wage query...

clockworkjerk

Now, this really doesn't have a great deal to effect me, but it was brought up and I thought I'd try and look into it anyway.

Obviously a lot of retail companies used to pay premiums for certain shifts like nights, weekend work and bank holiday, which they have mostly got rid of as we move towards a 24/7 life.

Basically how are they now getting around not having to match the NLW £7.20 as a base rate for their longer term and loyal staff who have kept contracts that give them those premiums?

Example

New member of staff full time(work weekends, bank holidays, no premiums just a flat rate) = 40 x £8, so £320

Older member full time(same schedule as above) = 40 x £7 so £280, certain premiums means he does go over £320....but for half of his working is technically being paid less than £7 as they aren't hours that give him premiums.

Are they allowed to take that into account? Or come April, will they have to up those staff to £7.20 base rate and are currently just using it as a tactic to push them off older contracts into a new one?

sammyjammy

As long as they pay works out at the new minimum wage (I refuse to call it a living wage) they can do what they like.

patman99

Be warned, a lot of the big retailors are looking to recruit only those betwenn 18 and 24 in the future. That way they can pay what they like as this age range is not covered by the new NMW.

JJG

patman99 wrote: »

Be warned, a lot of the big retailors are looking to recruit only those betwenn 18 and 24 in the future. That way they can pay what they like as this age range is not covered by the new NMW.

Not what they like. They'll have to pay the minimum age for that age range, which will be lower.

TELLIT01

patman99 wrote: »

Be warned, a lot of the big retailors are looking to recruit only those betwenn 18 and 24 in the future. That way they can pay what they like as this age range is not covered by the new NMW.

Wrong. There is a National Minimum Wage for all age groups.

From 1 October 2015:

• the adult rate will increase by 20 pence to £6.70 per hour
• the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
• the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour
• the apprentice rate will increase by 57 pence to £3.30 per hour