I think i've been getting underpaid for years by my employer.. HELP

riccardouk

When i first started my job my rate of pay as per my contract was slightly above the UK minimum wage rate. As the rate increased, my basic did not. This resulted in my basic salary being below national minimum wage for around 3-4 years.

Whenever it was questioned the employer said that our separate "shift allowance" (for unsociable hours) made my overall pay more than the minimum wage. Which is probably correct. But i'm now questioning it because after i left the company, another employee has since told me that the company is being investigated for underpaying their staff. The people investigating are saying whatever the minimum wage is, the basic pay should match or be above and "shift pay or shift allowances" should not be taken into account as they're two separate things.

Thinking about it now, it does sound like they're wrong. It would be like them saying: Your basic pay is below minimum wage, but it's ok because your overtime or extras will make your total pay above minimum wage.

Can anyone confirm that the basic pay and shift pay can or can not be combined, and the basic pay rate must be above minimum wage regardless of shift pay for unsociable hours?

sangie595

riccardouk wrote: »

Can anyone confirm that the basic pay and shift pay can or can not be combined, and the basic pay rate must be above minimum wage regardless of shift pay for unsociable hours?

I'm afraid the answer is maybe, possibly! It isn't the case that NMW is that simple to work out - it all depends on what you call the basic rate, and your description of the basic rate isn't exactly what the law considers it to be. But without getting into messy details....a shift allowance wouldn't usually be automatically included in the calculation for NMW, but it can be if it has been consolidated into the standard pay an employee receives. What that means is that it is paid routinely, and not simply when the employee works particular shifts. So if the shift allowance was paid at the same level, every month, regardless of things like holidays etc., then it probably does count towards the minimum wage; but if you only received it when you actually worked certain shifts, then it doesn't.

ACG

My understanding is that providing you come out with the minimum wage (even if that includes shift allowances etc) there is little you can do.

So if minimum pay was £6 p/h and your pay was £5 p/h but with bonuses/shift allowances etc you came out with the £6 p/h for every hour worked, there is probably little you can do....But that is just my understanding.

If you remember, some pubs/restaurants used to pay their staff less than minimum wage but with tips it took them over and so they did get some bad publicity but legally there was nothing that could be done.

sangie595

ACG wrote: »

My understanding is that providing you come out with the minimum wage (even if that includes shift allowances etc) there is little you can do.

So if minimum pay was £6 p/h and your pay was £5 p/h but with bonuses/shift allowances etc you came out with the £6 p/h for every hour worked, there is probably little you can do....But that is just my understanding.

If you remember, some pubs/restaurants used to pay their staff less than minimum wage but with tips it took them over and so they did get some bad publicity but legally there was nothing that could be done.

Sorry - that is wrong. The correct version is what I have already said above - http://findlaw.co.uk/law/small_business/employment_law_small_business/national_minimum_wage_employment_law_small_business/1369.html

xapprenticex

Wasnt expecting min wage.