Minimum wage and Disciplinary

foxy_squirrel

Have a colleague who has not been given a cost of living rise this week as they are on a disciplinary which expires in 3 months time. They are, very upset, as now they are earning less than the rest of our team.
Is this legal?
I am pretty certain it is not, as they are being paid 15p an hour less than minimum wage. Our Boss has said there is nothing they can do, they have been told by our HR dept that this will have to stand for a year until the pay review next year.
I would have thought that it would have been reviewed in 3 months time when the disciplinary has expired.
What should they do? Another colleague has said they should contact HMRC and report them, as everyone should be earning £7-50 minimum per hour.
This person is 30 years old and on a permanent contract, so no restrictions apply.
Any words of wisdom gratefully received.

Masomnia

Earning less than the rest of the team is not illegal. Not being given a pay rise is not illegal in and of itself, especially if there has been a disciplinary. I would have thought that someone having been issued written warning would be a good reason not to increase their pay.

However, being paid less than minimum wage is illegal.

Your colleague should raise it with HR to query the rate of pay. Going to HMRC first is not constructive.

xapprenticex

If he has min wage then whatever else happens is 'legal' as long as its not due to discrimination. Not gonna lie, you friend sounds like he needs firing if he is getting very upset when he should be glad he still has a job (for now).

Undervalued

foxy_squirrel wrote: »

Have a colleague who has not been given a cost of living rise this week as they are on a disciplinary which expires in 3 months time. They are, very upset, as now they are earning less than the rest of our team.
Is this legal?
I am pretty certain it is not, as they are being paid 15p an hour less than minimum wage. Our Boss has said there is nothing they can do, they have been told by our HR dept that this will have to stand for a year until the pay review next year.
I would have thought that it would have been reviewed in 3 months time when the disciplinary has expired.
What should they do? Another colleague has said they should contact HMRC and report them, as everyone should be earning £7-50 minimum per hour.
This person is 30 years old and on a permanent contract, so no restrictions apply.
Any words of wisdom gratefully received.

If that is the case then it is unlawful.

Generally, there is no legal right to a pay rise unless (as appears to have happened here) failing to get one means that your pay fall below the national minimum wage. The fact that they are earning less than the team is irrelevant. There is no legal obligation to pay people the same amount for the same job unless the reason amounts to unlawful discrimination (race gender etc).

Strictly speaking the disciplinary situation has no bearing on this as they cannot lawfully reduce his / her salary below the NMW.

Having said all that I do wonder how wise it would be to make a fuss at the moment. If they were to leave (or be dismissed) they could pursue a claim for the shortfall then but otherwise it may be best not to rock the boat if they want to keep their job.

TELLIT01

The employer is laying itself open to prosecution if failing to pay the minimum wage.

Rosemary7391

It sounds like HR have only registered that they haven't got their pay rise, not that this means they're now not being paid minimum wage. I'd be very explicit to boss and HR about the minimum wage issue only, in writing, and get a reply before thinking about whether I wanted to take it to HMRC (I might wait until the disciplinary had expired before making further waves, although that depends on context I guess).

ohreally

foxy_squirrel wrote: »

Our Boss has said there is nothing they can do, they have been told by our HR dept that this will have to stand for a year until the pay review next year.

Another clueless boss/ HR dept.

I'd be inclined to keep quiet (maybe too late now), and put the employer on HMRC's radar.

Perhaps best way forward is to ask HR to review the situation re min wage compliance.

Unionised?

General_Grant

What is the pay period?

IIRC the new NMW needs to be paid once all of the time being paid occurs after the new rate is effective.

For example, if paid monthly on the 27th of the month for time up to 20th of the month, then some of the pay period for 27 April pay would be in time that the previous NMW rate applied and therefore the new rate does not have to be applied until the next pay day.

foxy_squirrel

hello thank you for the replies. My colleague knew they would not receive a pay rise dependent on effort and merit etc due to the disciplinary, this year. However it is the point about being below the NMW which I wished to raise. We will be taking it up with our Line Manager next week in writing, if we do not get to where we need to be, we will then go to HR. HMRC is a last resort.

sangie595

foxy_squirrel wrote: »

hello thank you for the replies. My colleague knew they would not receive a pay rise dependent on effort and merit etc due to the disciplinary, this year. However it is the point about being below the NMW which I wished to raise. We will be taking it up with our Line Manager next week in writing, if we do not get to where we need to be, we will then go to HR. HMRC is a last resort.

Why are "we" doing anything? If you are a trades union representative, then your colleague needs to raise this through the proper union channels, and with the proper procedures for a grievance as outlined in your policies. If not, then there is no "we" about this and it is the responsibility of your colleague to raise it - again through the proper grievance procedure. Your colleague had an entitlement in law to be paid the national living wage. I doubt the employer will be willing to pay below that once it is pointed out what had happened. And the employer will probably not be too bothered to have it pointed out. Or not. That's a rationale your colleague has to work through. We don't know any of their circumstances. But unless you are a trades union representative (in which case, for future reference, ask the union for advice you are unsure of, not a website of strangers who may or may not be correct) sticking your oar in is not your entitlement, and the employer may take a less than charitable view of your rabble rousing. Some take a less than charitable view of people who are union reps, never mind people who aren't! By all means, it's laudable to want to help your colleague. Give them the advice. But be very careful about putting yourself out there without any protection whatsoever. If your employer is the less than charitable kind, then you are painting a target on your back.

And if you have that kind of death wish, you may as well join a union, become a rep, and at least get the protections and support that entails.

xapprenticex

OP are you the one with the disciplinary? You seem awfully involved in someone else's business otherwise, it gives me the impression you are the ''colleague''.