Pay Rights

This October, the government’s new increases came into force. This raised the minimum rate by 15 pence to £4.85 per hour for adults (aged 22 and over). The youth development / training rate (for 18-22 year olds) also increased to £4.10 per hour . Furthermore, a minimum rate for 16-18 year olds will be introduced for the first time – providing a rate of £3.00 per hour .

There are some categories of workers who, despite being over the age of 18, are excluded from the right to minimum pay. You are not covered if you are:

n an apprentice under the age of 19, or under the age of 26 and in the first 12 months of the apprenticeship;
n a trainee on a government funded scheme, like the New Deal;
n a student on a sandwich course or a trainee teacher;
n working and living within a family;
n or self employed

The pay rates above set out the statutory minimum rates of pay for each age group. However, the GMB believe that these statutory rates continue to be far below a satisfactory level and argue that there should be a substantial increase.

There has been a noticable increase in demand for young workers under the age of eighteen with many of them finding themselves dismissed upon reaching eighteen years of age.

Official GMB policy is to campaign for the abolition of the discriminatory youth rates and for the inclusion of all young workers from thirteen years of age.

A simple guide to follow is you should be paid a rate for the job, not a rate for your age.

CASH SHORTFALLS
Employers can lawfully include in your contract a term which requires you to make up any shortfolls in cash on the tills or on stock under your control. However, to do this:

n they must have notified you in writing before making the first deduction (section 13 Employment Rights Act 1996) and the agreement as to what is to be deducted must be specific and clear;
n and if you are a retail worker they should not deduct more than 10% gross of any single pay packet except the last (section 18 Employment Rights Act 1996).

If your employer has not given you the written notice of what will be deducted and for which reasons then the deduction itself is unlawful and you should take this up at once with your GMB representative. Do not delay going to the GMB because there is a three month time limit for taking claims should it be decided that the case needs to go to a tribunal.

OVERTIME
There is no specific law covering overtime pay but the practice in most workplaces is to pay a premium rate for any overtime worked. However, if you are working part-time you may find that your contract states that you will only be paid at the basic time rate until you have done the same number of hours as a full-time worker. In law employers are allowed to do this.

The overtime rate is often the basic hourly rate plus 50% (usually called time and a half). If you are being asked to do extra hours but without any premium pay then take this up with your GMB representative.

TIPS
If you are working in a bar, hotel or restaurant you may find that there is a system of tipping. Customers, when settling the bill, will either add an amount to the total or have a set percentage added to the bill in advance. As far as tips are concerned you should have had explained to you how these would be divided up. Where they are paid in cash there is usually no problem. Tips are usually put into what is called a tranche and then divided up, with each employee getting a percentage, usually related to the job they do. An employer who decides to reduce the staff share of the tips is making an unlawful deduction to wages according to the case of Saavedra v Aceground [1995] Industrial Relations Law Reports (IRLR) 198. If this is happening you should immediately report it to your GMB rep. However, if tips are added to a credit bill then according to a case which was heard by the Court of Appeal, Nerva v RL & G [1996] IRIR 461, these are not the property of the employee. If customers ask you about tips you can take the opportunity to explain the advantages of them paying the tip in cash.

OWED WAGES
You have the legal right to be paid your wages on the dates when they are due. Wages include holiday pay, sick and maternity pay. If your employer fails to pay all or part of them this is an unlawful deduction under the Employment Rights Act 1996. You should immediately contact your GMB representative if this happens. Do not delay as there is a three-month time limit should you need to put the claim to a tribunal.

 

 

Pay rights
Cash shortfalls
Overtime
Tips
Owed wages