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Employment Contract Advice

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Posted (edited)

Hi folks,


Looking for a bit of advice regarding my wife's work contract which I think is a little fishy to say the least.


She's contracted to work 52 hours per month and gets paid £6000 per year basic salary.


Working on a time tracker, she gets an additional 'living wage' adjustment once a year if she exceeds her contracted hours. 


Her contract also states that she can get a yearly commission bonus if she surpasses her target sufficiently.


She receives monthly commission statements but no monthly commission during the year.


To work out whether she qualifies for a bonus payment, the company subtract her annual salary from her yearly commission total with any balance representing her yearly bonus. Fair enough one might say. 


However, the contract also states that the company is entitled to subtract any additional 'living wage' adjustment figure from the commission as well !!


The living wage adjustment is money she's legally entitled to and I simply cannot get my head around how the company can justify deducting this from her commission total which she's worked hard all year to achieve. 


As a side note, if she doesn't hit target, she still gets paid the yearly salary and living wage adjustment. 


What say the people of CAG? Does this even sound legal? 🤔



Edited by %Ostrich%
Title Tweak

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Sorry, yes it's lawful. Nobody is legally entitled to more than the national minimum /living wage. Any payment above that is contractual, and the employer can set any contractual terms they like. What you are describing is not uncommon amongst certain employers. Basically, they can include any bonus or commission in the calculation to get up to the minimum wage, effectively reducing the basic wage by this. Providing its set down clearly, as you say it is,  that's lawful. 


Fishy? No. Perfectly lawful.


Does she need a better job? Of course she does....

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Thanks for the response Sangie. 👍

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you find somehting not dissimilar in the restaurant trade with tips paid by customers counting towards the hourly wage, esp if paid by card with the bill.

A bit rough on the person who thinks they are being nice to the staff by adding a  gratuity but perfectly legal

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