Terms in Employment Contracts

[Jamesx81x]

Hi

 

If a term in an employment contract states a certain % of your annual earnings will be contributed for pension purposes, then fair enough.

 

But what if then a further term states YOU WILL pay this % whether or not you opt in or out of the pension scheme. In essence paying the employer of % of your wage to receive nothing back.

 

I understand employment law stipulates that if a term is written into your contract then it is not illegal but how far does that stretch exactly? Surely it was never intended for employers to get away with such terms?

 

Any advice be appreciated

 

James

[becky2585]

Larger companies have to auto enrol their employees in a pension scheme by law, so that may explain the clause?...

[steampowered]

I doubt the payment goes to your employer. Presumably it goes to the trustees responsible for running the pension scheme.

 

Is this a final salary or defined contribution scheme?

[honeybee13]

Hello James.

 

I think you've posted about this before. Would you be able to give us a link to the thread or threads please?

 

I'm pretty sure I've answered you about this before and that you have a union involved.

 

My best, HB

[ims21]

Here you go HB

 

Same issue

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?381450-Employer-Deducting-Wages

[honeybee13]

Thank you ims21.

 

HB

[renegadeimp]

Larger companies have to auto enrol their employees in a pension scheme by law, so that may explain the clause?...

 

Depends when the employee started. Auto enrolement for employees who have been with a company for a certain period of time dont get auto enrolled until they want to, or till 2017/

[honeybee13]

James, last time you posted about this, I asked you to quote us the contract term, but I can't see it on you other thread.

 

It's hard to advise without knowing what's written down. Am I right in thinking there's a union involved?

 

HB

[Jamesx81x]

The term regarding the pension contributions was negotiated with the Union under a collective agreement which is fair enough as it is for pension purposes!

 

The term I have a big problem with is the one after it that states: your salary will be abated whether or not you elect to join the pension scheme!

 

So if I decided not to be in the scheme I would still have my salary whacked for what equates to £200 a month

 

I struggle to find how such a term which only benefits the employer is legal in any sense!

[Jamesx81x]

That is how the term is worded by the way, as above

[steampowered]

Can you post the exact wording?

[Jamesx81x]

As stated above: your salary will be abated whether or not you elect to join the pension scheme

 

So on what grounds do they take a % of my wage, for which i will receive nothing back if i chose not to be part of the workplace pension scheme!

[assisted blonde]

Are you getting a pension as well as wages, if so I understand your salary may be reduced by the amount of the pension therefore you will be working for less than the job scale? well that's my understanding of it.

[steampowered]

I guess it is unusual, and it is certainly aggressive, but I don't think it is illegal. The effect is not that different to employers who pay matching pension contributions - if I pay 5% into my pension and my employer matches it, I am effectively getting 5% more pay (and paying less tax) than someone who does not contribute. It may be related to the union since it is a collective agreement.

 

Best to join pension schemes where you can to be honest. The current state pension may not sound like much, but it is already is too high and probably not sustainable in the long term.

[renegadeimp]

They cannot simply deduct payments to self enrich themselves. The money deducted MUST go somewhere.