The The Success Foundation
"Without man's dreams there would be none of man's achievements"
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News New Training Courses - REWARDING PERFORMANCE. Click here or index tab to see more The adult rate of NMW increased to £5.35ph from 1st October. The junior rate and training rate rose to £4.45ph. from the same date. The age 16 &17 rate increases to £3.30.
Note: The adult rate applies to those aged 22 and above who are not undertaking accredited training. The reduced rate applies to those aged 18 to 21, and those above this age for the first 6 months of employment if they are receiving accredited training. There is currently no NMW for those aged under 16.
Age Discrimination and rewards Despite the dire warnings it seems that the Age Discrimination Act will have little effect on reward management. Pensions are exempt, though retirement age rules have changed to make compulsory retirement before age 65 illegal. Similarly the NMW is exempt. Service related pay is not discriminatory as long as there are good business reasons for using it. Even long service awards are exempt for the first 5 years of service, though we doubt that any tribunal would question payments for longer periods. So the only casualty may be service related holiday, though with good arguments even this will probably be OK. So, all in all, a fortunate damp squib. With Pensions Simplification has come removal of the earnings cap, in its old form. For 2005/6 tax year this was £105,600pa, but now earnings up to £215,000pa may be pensioned with no limit in the year before retirement. Holiday pay issues have not been resolved The Working Time Directive requires that employees be provide with 4 weeks paid holiday. So what happens to piece rate workers. Answer, they have to be paid their average earnings, not their basic salary. So what then happens to those who would earn incentive payments, say in a call centre? It seems that they should also receive average pay even though they cannot actually earn it. However, this has yet to be taken to a court for a decision. |
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