The term wages includes fees, commissions, bonuses, holiday pay, statutory sick pay, statutory maternity pay and pay in lieu of notice (if paid under a
contractual provision, but not if genuinely paid as compensation for failing to give
notice).
In general, employers cannot make deduction from the amount to be paid except for specific reasons which may include:-
- Where deductions are authorised by law, eg. under the PAYE provisions
- Where deductions are authorised by the employee in advance of the event
- Where deductions are made to reimburse the employer for overpayment of wages or expenses.
There are certain other times when an employer can make a deduction, eg. if the
employee was engaged in industrial action.
The law sets down the minimum amount that can be paid to adult workers (aged 22 and over)
and to young people (aged 18 to 21). Currently these are set, as at October 2005, at
£5.05 and £4.25 per hour respectively.
Generally, a person qualifies for the National Minimum Wage if he/she is a worker who
is (or ordinarily works) in the United Kingdom and has ceased to be of compulsory school
age. There are certain types of workers that are excluded, eg. under 19 trainees on
Government training schemes or resident family workers or resident home help. The
self-employed do not qualify under these regulations.
The position with regard to the payment while sick is different. Sick pay
entitlements are determined by the contract of employment (other than statutory sick pay
which every employee has a right to have for up to 28 weeks providing that they are under
the age of 65) and it is in fact one of the terms that must be addressed in the written
contract or statement of particulars of employment. Regardless of the contractual
position, if an employee is leaving and off sick during his or her statutory notice
period, he or she must still be paid in full for that period.
The Working Time Regulations 1998 set minimum holiday entitlements for most workers and
they are entitled to these amounts in addition to their normal pay, although
sometimes in certain occupations and in certain circumstances holiday pay can be rolled
into the wages payment structure.
Employers are obliged to provide employees with an itemised pay statement at or before
each pay day. If the employer fails to do this, the employee can apply to the Employment
Tribunal for a declaration to this effect.
We are a firm of employment solicitors who deal nationally in all matters relating to employment law. We are able to pursue or negotiate a claim on your behalf and can provide you with representation anywhere in the country. If you want an assessment of the merits of your case, please contact us without obligation on 020 7408 1338.
