You are free to decide how much to pay an employee provided that this is above the national minimum wage. It is also important to ensure that employees are being paid fairly in relation to their colleagues to maintain staff motivation and morale but more significantly to be compliant with equal pay laws.
Wage disputes are likely to arise when:
- deductions have been made from an employees wages without prior consent;
- an employer has imposed a pay cut;
- a bonus to which the employee is entitled is refused;
- an employee is made aware that a colleague of the opposite sex is paid more favourably despite undertaking the same job; or
- the employee is not given the correct holiday entitlement.
Failure to comply with employment law in this area can lead to employees making a claim at the employment tribunal for unfair deductions of wages and/or a discrimination claim which can prove to be costly to your business and the morale of your staff.
You must ensure that you give adequate consideration to how you pay your employees, any deductions made and you must not make any unlawful pay cut. We can provide advice and assistance to ensure that any wage policy you employ is fair, reasonable and within the law to ensure that disputes are held to a minimum. Call us on 08000 320 974.
Read more about wages issues here.
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