Minimum wage and salary concerns

ftsos

Hello Everyone,

I am confused about something. I am not sure I completely understand the UK minimum wage etc. I understand the hourly rate, so I think I am clear on that.

However, I know a number of people who don't get paid hourly, they are on annual salaries, and their wage, once you consider the hours they work fall well below National Minimum Wage. For example some over 21's I know employed on a entry level full time job are getting £12,000 per annum, and they are working about 40-45 hours per week, to me that falls well below minimum wage, are these employers allowed to get away with this?

One other thing, 2 of these people are employed 3 of these PAYE, based what they have said, and one is on invoice contractor.

If anyone has any knowledge on this, can you please advise?

Thank you.

Darksparkle

Are the over 21 but under 25?

Have these people taken it up with their employers?

Is the 40-45 hrs what they are contracted to? Does this include paid/unpaid breaks? Overtime?

NMW only applies to employees, the self employed set their own rates. Unsure what you mean by 2 are employed and 3 of these are PAYE? PAYE is the method used to deduct tax/NIC from the employed.

[Deleted User]

Working Time Directive ? Every weekend our place is run short to the bone and they never ask the people who aren't rota'd to work a weekend or the temps who say extra hours is not authorised.

So one half of the room is laughing- while the other half can claim being over worked

Wonder if such a thing happened at S/D

ftsos

These people are over 30 years of age. No they have not taken it up with their employer. The 40-45 hours I said based on the fact that one does 9.5.30 and one does 9-6 hours Monday to Friday. 2 of them are employees and one is a contractor.

I assume the contractor can be legally paid anything and they don't have a leg to stand one!!!

Darksparkle

What lunch break do they get and do they get paid for it?

If I worked 9-5:30 I'd have an unpaid one hour lunch. So would only be 37.5hrs per week.

If over 25 then they are entitled to the national living wage of £7.20 per hour. So yes it appears they are being paid too little and they need to discuss the with their employer/union.

The contractor would set their own rates, normally this would be higher the NMW/NLW but it is their choice.

ftsos

So I assume by your email, even if they are on a salary, the same hourly rate principles apply? They must be paid the minimum hourly rate for their hours?

Darksparkle wrote: »

What lunch break do they get and do they get paid for it?

If I worked 9-5:30 I'd have an unpaid one hour lunch. So would only be 37.5hrs per week.

If over 25 then they are entitled to the national living wage of £7.20 per hour. So yes it appears they are being paid too little and they need to discuss the with their employer/union.

The contractor would set their own rates, normally this would be higher the NMW/NLW but it is their choice.

Darksparkle

ftsos wrote: »

So I assume by your email, even if they are on a salary, the same hourly rate principles apply? They must be paid the minimum hourly rate for their hours?

It doesn't matter if hourly or salary.

https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage

sangie595

ftsos wrote: »

So I assume by your email, even if they are on a salary, the same hourly rate principles apply? They must be paid the minimum hourly rate for their hours?

Theoretically, yes. But with salaries it is never quite that simple. They must be paid the equivalent of the minimum / living wage for their contractual hours (excluding breaks, which can be unpaid). But if they exceed their contractual hours, it depends on whether that is done on a voluntary basis or not. If the employer requires them to work more hours they must also be paid. But if they do them voluntarily and nobody tells them they must, the employer is not required to pay them for those hours.