Can shift allowances be considered when comparing pay against NLW?Posted in : Seamus Says - Employment Law Discussion on 5 January 2018
Q "Operators work a permanent 24/5 shift on rotation and receive contractual static shift allowance premium on top of their basic salary. Can this shift allowance be taken into consideration when comparing pay rates against the national living wage?"
Keywords: Salary; Shift Allowance; Pay Rates; NMW
Seamus: So the basic position is that they're saying the question then as I understand it is underlined. The basic position has to be that you can't pay less than . . .
Scott: The national living wage, but in these guys, they get a basic wage and then they get a shift allowance on top. They go home with more than the national living wage, I'm assuming, national minimum wage. But because they only get it because of the shift allowance, is that okay?
Seamus: I don't have . . . the issue is that is their salary, that's what they're taking home. It appears to me that it's contractually binding on the employer because the fact that they have agreed to pay this above and beyond. It forms part of their normal salary.
Scott: Going back to the holiday pay questions, that particular contractual allowance should be paid for the holidays as well, at least for the working time.
Seamus: Again, just looking at it from the position of what is the usual normal position for the employee, if that's what they're getting on top of their salary, it's inclusive.
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