Pay grade - can raises be implied

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Hey everyone

I have a query that is somewhat specific regarding pay grades and the actions of my employer over the past 7.5 years and whether they imply terms.

A bit of background:

I have worked in the same accountancy practice for 7.5 years, starting with no experience or qualifications back in 2012.

As such I started out on quite a low salary and proceeded to work my way up.

My pay was always determined by two things; number of years experience and number of ACCA exams I passed on the way to becoming a qualified accountant. see table below for my current pay scales taken straight from the letter from my employer:

ACCA exams passed; Experience; Salary
None; Up to 1 year; 21,000
Applied knowledge (three exams); 1 year +; 24,500
Applied skill (first three exams); 2 years +; 28,500
Applied skill (next three exams); 3 years +; 33,000
Strategic professional (four exams); 4 year +; 38,000

There is also the following wording under this table: "For each salary level it will be a requirement to meet both the exam and experience criteria. There would always be discretion for Employer Name to change or not apply these if for example you are performing exceptionally well, or having difficulties"

I would have a pay review after getting the exam results and if I had met the above requirements I would receive the pay rise from the next month.

There was also a discretionary option to receive a raise to half way through the band if I was over half way in exams and expereince required for that band.

Up until now I have always had the pay rises for both completed bands and the half complete bands which leads me to believe I am performing well.

After a couple of years, when I had passed six exams I was at the third pay level but due to personal reasons, I decided to stop studying for the exams temporarily. During this time, I (obviously) didn't receive any pay rises because I was not meeting the requirement of exams passed even though I had long surpassed the experience level.

This break ended up lasting two years so for that time I was at the same level pay wise. I then restarted my studies and started passing more exams. The pay rises then also came in again when I passed the relevant exams. I am now studying towards the final exam to become qualified, so from the above information, you would think that once I pass that, I would get to the final pay rate.

That is where my question comes in.

I had a review meeting after passing the third of four strategic professional exams, but nothing was mentioned about pay even though my employer would always bring this up themselves usually. So I asked about it, seeing as I was over half way between 33k and 38k in terms of exams.

The answer I was given was that the pay grades above are entirely discretionary and they didn't have to honour them. They said they thought what my pay was at currently was sufficient.

But it didn't end there, they then went on to say that actually, the £38k final salary level wasn't even applicable to my role and that it was actually for someone who took a manager level role. If I was to stay in my current role and qualify, I would only recieve a pay rise to £34.5k.

So I am wondering if they can just do that without consequence, after effectively lying to me for the past seven years about what pay I would receive when I qualified. My pay has always rigidly followed these scales both positively, when passing exams, and negatively, when I wasn't studying.

I know that contractual terms can be implied based on past actions, so would the fact that they have always followed these scales in the past, for better or for worse, imply that they should follow them now?

I'm mainly asking so that if I were to speak to my employer, I have a bit more knowledge about the area. I'm not looking to sue them for breach of contract or anything.

Comments

  • Question. Do you want a wage increase?

    Answer. Update cv. Walk!
  • Hawky89
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    Thanks for the reply.



    I have already updated my cv and had job offers from other practices. But I would like to have a sensible discussion with my current employer first. I do really like where I work but also feel that I do deserve a pay rise so I just wanted to go back to them more informed.



    I know I could just quit, but that is not the question I was asking.
  • middleclassbutpoor
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    It sounds like you have already had a sensible discussion.

    Are those offers and opportunities offering roles that appeal? If so, accept the role and move.

    The only thing stopping me would be any exam repayment costs clauses that may exist.
  • Pajaro
    Pajaro Posts: 56 Forumite
    First Post
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    Hawky89 wrote: »
    Thanks for the reply.



    I have already updated my cv and had job offers from other practices. But I would like to have a sensible discussion with my current employer first. I do really like where I work but also feel that I do deserve a pay rise so I just wanted to go back to them more informed.



    I know I could just quit, but that is not the question I was asking.


    Please try to get the rise from your current employer as you are well established there, and are importantly above the 2 year period where you cannot be dismissed without cause.

    If you go to another employer, you can literally be fired just because they do not like your hairstyle within the first two years.
  • jonnygee2
    jonnygee2 Posts: 2,086 Forumite
    Name Dropper First Post Combo Breaker First Anniversary
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    I know that contractual terms can be implied based on past actions, so would the fact that they have always followed these scales in the past, for better or for worse, imply that they should follow them now?

    No it doesn't. The pay rise to 38k is discretionary and that was clearly stated. The fact that they rose your pay to 33k etc doesn't mean . There's no way to force your employer to pay you more, unless you are contractually entitled to a raise, which from what you've said you aren't.

    I'd suggest speaking to them about how you can progress towards management if you want a pay rise.
    So I am wondering if they can just do that without consequence, after effectively lying to me for the past seven years about what pay I would receive when I qualified.

    I think accusing them of 'lying' is inflammatory. They gave an example of pay but also made it clear that the rises weren't guaranteed. You clearly saw this as 'I will definitely get that amount when I qualify', but that's really a misinterpretation because that's not what it said.
  • Dox
    Dox Posts: 3,116 Forumite
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    Hawky89 wrote: »
    I know that contractual terms can be implied based on past actions, so would the fact that they have always followed these scales in the past, for better or for worse, imply that they should follow them now?

    No. You also need to remember that you didn't follow a clear career path which might usually be expected of a trainee - a two year break from studying is quite a long break, however good and valid the reasons.

    I think you've had the discussion and you've had your answer from the employer: they don't see you as a high flyer. If you do, then time to flap your wings and fly off to somewhere which may offer you a better career path.
  • JohnDorian
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    As a qualified ACA that came from practice, I will tell you the following truths and you take them whichever way you want:

    Unless you are in the top 10 - 15 largest practices in the country - if they haven’t bent over backwards for you - they don’t want you there. Practices outside of the largest are very literally the toughest places for recruitment if they want a qualified accountant. As a result, they treat their own trainees like royalty if they think they can get them to partner level.

    Partner level is all these firms care about. Every other employee is just a wage cost. It’s partners that create profit and if they don’t think they can get someone to partner then they don’t care and would prefer they left because once a person qualifies they take that awkward position between being cheap trainee labour and being value adding partner.

    If you like where you work and the people you work with then let go of salary expectations and ambition. If you want a salary and senior position then find yourself a new firm. The structure is very rigid in firms so there is no in between.
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