A question about employment and salary structure.

[Bookworm]

My 18, soon to be 19 yo daughter came home tonight in a bit of a flap, to say the least.

The company she works for has changed the pay structure. The long and short of it is, it's now by age.
So if you're 16-17, starting salary is 9k. 18-19, 10k. 20-25, 11k. 26+, 12k.

If you've been there a certain amount of yrs, and you're getting more than what the new age structure allows, your salary will get frozen until your age "catches up".

For example, DD, who's been there 1 yr, is now getting 1k less than her colleague, same duties, who's been there 5 months, because his wages have gone up and hers haven't, and he's 20.

If you read this and think it's absurd, you're not alone.

My feeling is that surely, it's discrimination? Let's try replacing age by colour and read it again, and it's glaringly obvious.

Let's note that even though they have altered the pay structure, they haven't, as far as I can tell, altered the contracts of employment, which means the employees can't argue from that point of view.

Thoughts, suggestions, all very welcome. Thanks.

[cheddar]

This is absurd and simply SCREAMS age discrimination I suggest she get some sound advice from ACAS by going to http://www.acas.org.uk/ or ringing 08457 47 47 47. They are experts on this kind of thing.

My sister had a similar problem but down to sex discrimination, she went materinty leave and was replaced by a man doing her role, she found he was getting paid £2k per annum more for doing HER job, the company wouldn't listen so she took it to ACAS who organised a tribunal for her. I actually went along and it was very very interesting to say the least. They decided in the break to offer her a large-ish figure as an apology and she then handed in her notice as she had found another job anyway (much to their surprise!). It was worth it in the end.

I would think though that ACAS would be very interested in this as it isn't against one person alone but company policy to discrimiante against age. The company would have to come up with a valid business case as to why it is able to pay someone who is 26 £2k more than someone who is 18. I would understand if they were quoting the difference in pay for National Minimum Wage but it doesn't seem that they are.

NMW is as follows: The main rate for workers aged 22 and over is currently set at £5.05 an hour. On 1 October 2006 this will increase to £5.35

The development rate for 18-21 year olds is currently set at £4.25 an hour this will increase to £4.45 on 1 October 2006

The development rate for 16-17 years olds. This rate is £3.00 an hour. This will increase on 1 October 2006 to £3.30 an hour

That info is from the DTI where she may also be able to get some advice: www.dti.gov.uk

[Bookworm]

Thanks, Cheddar, you confirm what my thoughts and subsequent research last night dug out.

Considering that actual anti-age discrimination becomes law on 1st October 2006, their timing is indeed poor, to say the least.

[cheddar]

Isn't it! Hope you get somewhere with that hun, let us know how you get on!

[Bookworm]

So, an update.

DD marched to work this morning, armed with a copy of the Age Discrimination salient points, and her brain full of our discussions, including the racial parallel I had discussed with her, promptly showed he work colleagues, and they all agreed to wait what Mum would get after talking to either ACAS or DTI. Oh, the responsibility !

Anyway, she just msn'd (!) to say that she got called into a meeting with her manager, who asked her if she had a problem with the new pay structure (gee, I wonder how he guessed, lol). Well, she just let him have it with both barrels, as it were, showed him the paper, made all the right points... As a result, a further meeting is to be set up with the top bosses to discuss this further. Compared to her, I am a shy, retiring shrinking violet. Oh my.

I shall let you know the moment things happen.

[cheddar]

Excellent, am looking forward to what her employers have to say. Things like this really get up my nose!

[Bookworm]

Well...

To sum up, the manageress said:

"No, it's not illlegal. Yes, we can do this. H (DD), shut up. Don't you think we would consult a lawyer before embarking upon such a change? H, shut up. It's staying this way. H, shut up."

More or less.

ACAS were their usual sit-on-the-fence selves, but even them seemed a bit surprised that a company would change their pay structure to something that will become unlawful in 6 months...

[cheddar]

Yeah I know what you mean about ACAS but like you say with that new legislation coming in it does seem a bit stupid. Good on your DD, reminds me of what I was like when I worked for a contractor!!!