National min wage question.

Paradigm

Is it legal to advertise an hourly rate of £10 per hour but in reality the basic is £7.50 with the rest made up from bonuses, which are obviously not guaranteed?

Comms69

Paradigm wrote: »

Is it legal to advertise an hourly rate of £10 per hour but in reality the basic is £7.50 with the rest made up from bonuses, which are obviously not guaranteed?

Yes, unless the employee is over 25, in which case the minimum must be higher.

Marcon

Not if you are employing staff aged at least 25. The NMW has to be paid - in this case £7.83.

Paradigm

Definitely over 25! I must admit I thought the basic rate had to be at least NMW

Comms69

Paradigm wrote: »

Definitely over 25! I must admit I thought the basic rate had to be at least NMW

Yes it should be. Given it's £0.33p under it sounds like someone explain the process is round numbers than an accurate figure.


e.g. your basic rate is around £7.50, but with OTE you'd be getting £10 an hour.

TELLIT01

Is it legal to have a base salary of less than NMW if bonuses will take the final figure to above NMW? I seem to recall situations where something along those lines operated, with a 'safety net' to guarantee NMW during the training period. I'm assuming in that sort of setup in a sales environment that anybody failing to hit their target and requiring safety net support after training would probably be out the door pretty quickly.

Marcon

TELLIT01 wrote: »

Is it legal to have a base salary of less than NMW if bonuses will take the final figure to above NMW?

It is only legal if bonuses are guaranteed to take it to a minimum of NMW.

[Deleted User]

I know someone working in car sales below nmw. Every couple of months or so they have to top up his pay because he's not made sales to bring it to nmw.

sangie595

Marcon wrote: »

It is only legal if bonuses are guaranteed to take it to a minimum of NMW.

Sorry, but that is totally not true.

An employer does not even have a pay a basic wage! An employee must receive a wage which amounts to the NMW / living wage as appropriate. But the whole of that can be bonuses or commission. They do not have to be guaranteed. So I can pay you £0 per hour, and make up the whole of your wage from commission you have made on sales, for example. If you have not made enough commission then I must pay you the appropriate minimum wage, but I am not obliged to pay you more. Commission only jobs are still legal. Shouldn't be. But are.

Brynsam

sangie595 wrote: »

Sorry, but that is totally not true.

An employer does not even have a pay a basic wage! An employee must receive a wage which amounts to the NMW / living wage as appropriate. But the whole of that can be bonuses or commission. They do not have to be guaranteed. So I can pay you £0 per hour, and make up the whole of your wage from commission you have made on sales, for example. If you have not made enough commission then I must pay you the appropriate minimum wage, but I am not obliged to pay you more. Commission only jobs are still legal. Shouldn't be. But are.

You're splitting hairs and I think you know that. The requirement is to pay NMW, which is what OP was driving at.

Les79

Brynsam wrote: »

You're splitting hairs and I think you know that. The requirement is to pay NMW, which is what OP was driving at.

I thought OP was driving at the wage being mis-advertised as £10 when, in reality, it is actually £7.50.

It branched off a bit when someone queried the £7.50 figure.