• Monthly paid workers who receive an annual salary for working 9am-5pm, Monday to Friday; • Term-time only workers who receive equal weekly/monthly payments but only work during term time; or • Annualised hours workers who receive equal weekly/monthly payments for working 2,000 hours a year. Legislation provides a set of rules over how compliance with the National Minimum Wage is calculated when regular salaries are paid. Certain conditions must be met in order for work to qualify as salaried hours work under the National Minimum Wage Regulations. This consultation seeks views on how effective these rules are in preventing worker exploitation. This consultation also seeks views on proposed changes to the National Minimum Wage Regulations which relate specifically to salaried hours work, including Regulations 21 and 24. In particular, the Government would welcome your views on whether, and if so how, we might amend the Regulations to include additional payment cycles and fixing the definition of the calculation year for employers, without any detriment to workers. Salary sacrifice schemes are used in some workplaces whereby a worker agrees with an employer a lower rate of gross pay in exchange for goods or services (e.g. childcare vouchers, or bicycles). National Minimum Wage regulations include provisions designed to protect workers from unfair deductions from their wages. This consultation also seeks views on the practical operation of these provisions and their effect on workers on the minimum wage.
The National Minimum Wage: consultation on salaried workers and salary sacrifice schemes will run until Friday 1 March.
The CIPP Policy team has produced a survey in line with the questions asked in the consultation document, which will take approximately 10 minutes to complete – slightly longer if you have a lot of information to impart.
Whether you complete our survey or the government’s survey, or indeed both, this subject is an important one where the outcome will be change. Please help us to influence that change for the better.
Our survey will run for 4 weeks and will close on Friday 22 February 2018. Thank you in advance for your time.
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Minimum and zero-hours contracts and low paid staff 25 January 2019
Every year the Low Pay Commission publishes a range of independent research projects to build its evidence base and understanding of the labour market and low pay. One of the latest reports is about minimum and zero-hours contracts and low paid staff. Minimum and zero-hours contracts and low paid staff This report was produced by Incomes Data Research (IDR) and looked at how zero-hours and minimum-hours contracts were actually used in a variety of organisations. IDR gathered evidence from a sample of 40 employers on the use of these contracts for low-paid staff. They looked at the extent to which these individuals worked beyond their contracted hours and how volatile their hours of work were from week to week. Across IDR’s sample, there was a wide range of practices and working arrangements. Employers reported using these contracts to manage demand and cope with temporary and seasonal increases. Organisations were more likely to use zero-hours than minimum-hours contracts, but where the latter were used, they tended to cover more staff, with the most common amount of contracted hours being four or six. On the whole, staff were not given a choice over the type of contract they took. IDR found that individuals on these contracts typically worked around 12 hours per week, although they also found staff working virtually full-time on both types of contract. The principle that individuals’ contracts should reflect their actual working hours was at the heart of the LPC’s recommendations to Government (published December 2018). The LPC proposed a right for individuals to switch to a contract which reflected the reality of their working arrangements, going further than the right to request a more stable contract which BEIS are currently bringing forward.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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