Suddenly getting less than NMW

[djgordyp]

I have been working at the same place for over 15 years now. We at paid an hourly rate + production bonus per week.

 

Our current rate is £5.05 per hr + bonus (this can vary from £30 -£70 P/W)

Looking at my payslip on friday I thought it didn't look right. Gross pay was £248.87 for 40 + 1.5 (overtime) This comes to £5.99 P/hr. I also looked at another slip. It was, £250.26 for 40 +1.25 This one works out at £6.06

 

I believe they would try to argue that it's because my appraisal score (done monthly...or so they tell us) and therefore my bonus has been cut.

 

Am I right in thinking that this is no excuse and they are breaking the law regardless of what reason they decided to cut my bonus.

[djgordyp]

I have also been told that the bonus should be on top of NMW because it is too variable

[Gbarbm]

Found this on the Directgov website which may be of use to you;

 

 

National minimum wage - calculating national minimum wage pay - the basics

 

What counts as national minimum wage pay

 

When working out national minimum wage (NMW) pay the starting point is the worker's total pay in*a pay reference period, see the page in this guide on*national minimum wage pay reference period – ie*the pay received by the worker before the deduction of income tax and National Insurance contributions.

 

Incentive pay

Incentive payments count towards*NMW pay if they relate solely to the performance of a worker and are made as part of an incentive, sales commission, merit or any performance-related pay scheme.

 

Bonuses

Bonus payments count towards*NMW pay. For an explanation of how bonuses should be allocated to different pay reference periods,*see the page in this guide on*national minimum wage pay reference periods - bonuses.*

 

Pay that doesn't count as*NMW pay

Total pay for NMW purposes excludes payments that are:

 

loans

advances of wages

pension payments

lump sums on retirement

redundancy payments

rewards under staff suggestions schemes

Other amounts reduce the total NMW pay:

 

money paid by the employer to the worker in respect of tips, gratuities, service charges and cover charges from customers (but see below)

the premium element of pay for work paid for at a rate higher than the worker's standard pay rate

allowances other than those linked to performance

payments to reimburse expenses

some payments in respect of absences

Since 1 October 2009, tips, gratuities, service charges and cover charges no longer count towards NMW pay. This is regardless of whether they are paid through your payroll or are given direct to workers by customers or a tronc master.

 

Benefits in kind do not count towards NMW pay (even if they have a monetary value) – but note the special rules for employer provided accommodation.

[djgordyp]

Thanks Gbarbm. That's what I thought but just had to check as I was told different from two people. A company the size I work for (about 300) would have the best lawyers who would have checked that out. But it would seem they have not got checks in place to ensure a worker isn't paid less than NMW

[Gbarbm]

Strange... Because most payroll systems whether in house or out sourced have in built parameters in respect of NMW.

However, like most computerised systems, they're only as good as the person inputting the details

[djgordyp]

I get £5.05 per hour & the rest is made up from a production bonus. Can someone tell me for sure if my employer can reduce my bonus for things such as reliability or attitude, to a point where my hourly rate falls below £6.08 My thinking is they can't

[Emmzzi]

They can't.

 

a) you must get NMW and

b) does your contract mention deductions? If not, no deductions.

 

However if it is attitude deductions I think it best if you and employer part ways asap. Soon as you have a new job report them using your pay slips as evidence.

[djgordyp]

Got it kinda sorted. The wages clerk is correcting the figures and worked out I'm owed £29. Supervisors are supposed to have a face to face meeting with each of us at least every three months or sooner if we have been marked up or down. I asked my supervisor 2 weeks ago for an appraisal and I'm still waiting. Meanwhile others that I work with have had theirs. And if I go to HR about it the supervisor is unhappy about it then so that doesn't help matters. I did this back in April 2010 and the supervisors remarks were very cutting to say the least. I have had no meeting since that time until March (I think) this year. Emmzzi believe me I cannot wait to get out of the dump. Thanks for your help by the way.

[Atlas01]

just remember with bonus schemes of this type that legally until you hit NMW they are nothing of the sort, you can sit on your backside with a banjo and sombrero on and they still have to pay you (ignoring the fact of being sacked for sitting around )

 

They either pay you NMW or instigate capability proceeding for not hitting targets they can't go below the NWW, from experience with the people you complain to though it's better to resolve via your employer, the NWM people were as much use a chocolate fire-guard when i put them to work for my sons girlfriend.