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Minimum wage query

I_was_FloydI_was_Floyd
edited February 2012 in Not Sports Related

Not sure how I stand on this one so I'm looking for a bit of assistance. Due to a disastrous 10 years workwise and spending 6 months unemployed last year, the only job I got offered was for a wage of £14,000.00 a year. Excluding lunch I work a 9 hour day. By my calculations with the minimum wage at £6.08 an hour I would appear to be working at less than minimum wage by a bit over £200.00. However, the employer pays a £1000.00 bonus split into 4 x £250.00 payments through the year.

The query is whether or not this bonus payment technically counts as part of my wages in relation to the minimum wage. I suppose it depends on the definition of bonus, but my thoughts are that a bonus is strictly that and the employer could decide they couldn't afford to pay it. I don't want to go and talk about it with them until I'm sure of my grounds.

Any help would be welcome.

Comments

  • NathanPriorNathanPrior
    Bonuses don't count towards it
  • I_was_FloydI_was_Floyd

    Thanks, that helps a lot. I'll be having a word though which will no doubt result in a couple of scenarios. The bonus will disappear to be replaced by the £1000.00 incorporated into the wage correctly OR they'll find a way to get shot of me and bearing in mind they get close to 200 applicants for a vacancy they won't be losing sleep.
  • BlackForestRedsBlackForestReds
    Sorry about the length of the link:

    http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1096712760&r.i=1096705664&r.l1=1073858787&r.l2=1081657912&r.l3=1096705577&r.t=RESOURCES&type=RESOURCES
  • I_was_FloydI_was_Floyd

    Thanks BFR. I'll go through that properly now.

  • HarryHutchensHarryHutchens
    Your hourly wage depends on how many hours you are CONTRACTED to work, not how many you actually work.
  • Leroy AmbroseLeroy Ambrose
    Your employer isn't Tesco by any chance, is it?
  • Henry IrvingHenry Irving
    Do you have a contract of employment or a statement of particulars? By law you should have one within 13 weeks of starting (need to check that time period).

    That should set out all the terms and conditions including pay, pension, bonuses.

    inbox me if you want to go into more detail.
  • Vinnie V.Vinnie V.
    edited February 2012
    Is it a loyalty / attendance bonus?

    Businesses with attendance issues sometimes offer a "Bonus" for attendance based on the fact that the average sick time a person takes so that the salary paid for actual hours comes into line with the minimum wage.

    So if you are contracted to work 2340 hours a year. They expect you to take 5 days off and therefore pay you slightly over the minimum wage for the actual hours you have worked.

    If you don't take any time off you are rewarded by being payed slightly more than the minimum.
  • I_was_FloydI_was_Floyd
    Your hourly wage depends on how many hours you are CONTRACTED to work, not how many you actually work.
    Contracted hours 0700-1700 Monday to Friday with an hour for lunch
    Your employer isn't Tesco by any chance, is it?
    I'd have better terms and conditions with Tesco Leroy
    Do you have a contract of employment or a statement of particulars? By law you should have one within 13 weeks of starting (need to check that time period).

    That should set out all the terms and conditions including pay, pension, bonuses.

    inbox me if you want to go into more detail.
    Henry, I have a contract which states all relevant holiday details, pay, hours etc. However, this bonus payment is omitted. Thanks for the offer, I may take you up on that.
    Is it a loyalty / attendance bonus?


    Businesses with attendance issues sometimes offer a "Bonus" for attendance based on the fact that the average sick time a person takes so that the salary paid for actual hours comes into line with the minimum wage.

    So if you are contracted to work 2340 hours a year. They expect you to take 5 days off and therefore pay you slightly over the minimum wage for the actual hours you have worked.

    If you don't take any time off you are rewarded by being payed slightly more than the minimum.
    Vinnie, no it seems to be nothing of the sort. Tbh it all seems a little shady and one or two of us are looking at it over the weekend to try to work out exactly where we stand and there is a small issue
    where a few of us seem to have been told slightly different stories regarding this bonus issue. I'm finding it slightly odd that it's not referred to in writing but seems to be (and historically has been according to longer serving staff) something that has always been paid. Why it just can't be incorporated into our salary I've no idea, but maybe there's some tax reason in the companies favour.

    Thanks for helping guys


  • jimmymelrosejimmymelrose
    A minimum wage will only help when there's a maximum.
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  • SaoPauloAddickSaoPauloAddick

    Thanks, that helps a lot. I'll be having a word though which will no doubt result in a couple of scenarios. The bonus will disappear to be replaced by the £1000.00 incorporated into the wage correctly OR they'll find a way to get shot of me and bearing in mind they get close to 200 applicants for a vacancy they won't be losing sleep.
    Do you have a union at work that could get involved on behalf of everybody who is affected?

    Incidentally, if they got shot of you because you were trying to exercise your legal right to the minimum wage, that would automatically count as unfair dismissal. I'm sure your union would point that out to them!

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