Annual Salary vs. Hourly pay

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Hungryturtle

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Apr 10, 2017
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What is the difference ? Do both claim benefits and paid yearly holidays?

Am I legally obliged to pay hourly employees overtime extra if they agree in the contract to not be paid overtime? say for instance a 12 £/ hour works more then 48 hours a week? say 60 hours-The additional hours will be paid but at the same rate as the other hours and not x1.5- Am I legally obliged to pay overtime extra if they agree not to be paid overtime extra in the contract?
Do note that:
all overtime will be paid but not x1.5. will remain x1. so any overtime hour will be paid same as normal working hour.
 
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Newchodge

Business Member
Nov 8, 2012
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Newcastle
As you have been told before. There is absolutely no difference in terms of holiday or any other statutory entitlement. the difference is that annual salried people get the same amount of money however many days are in the period they work, hourly paid staff get a rate that varies depending on how many days they worked in that period. Over the year they both get exactly the same.

So if an annual slaaried person works every Monday and Friday they get the same amount every month.

An hourly paid person on the same shifts may get paid in 1 month for 7 working days and in another for 11 working days, depending on when the days of the week fall.

But overall they get the same.
 
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Hungryturtle

Free Member
Apr 10, 2017
81
2
As you have been told before. There is absolutely no difference in terms of holiday or any other statutory entitlement. the difference is that annual salried people get the same amount of money however many days are in the period they work, hourly paid staff get a rate that varies depending on how many days they worked in that period. Over the year they both get exactly the same.

So if an annual slaaried person works every Monday and Friday they get the same amount every month.

An hourly paid person on the same shifts may get paid in 1 month for 7 working days and in another for 11 working days, depending on when the days of the week fall.

But overall they get the same.




Thanks -

Am I legally obliged to pay hourly employees overtime if they agree in the contract to not be paid overtime? say for instance a 12 £/ hour works more then 48 hours a week? say 60 hours- Am I legally obliged to pay overtime if they agree not to be paid overtime in the contract?
 
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Newchodge

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Nov 8, 2012
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You are legally obliged to pay according to contract. You are also legally obliged to pay minimum wage.

Any employee who agrees a contract where they get paid £576 for working a 48 hour week and £576 for working a 60 hour week is either so desperate for a job that you need to worry why no one else has employed them, or illiterate and doesn't understand what they have signed up for.

Would you be prepared to work unlimited hours for no pay?
 
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Hungryturtle

Free Member
Apr 10, 2017
81
2
You are legally obliged to pay according to contract. You are also legally obliged to pay minimum wage.

Any employee who agrees a contract where they get paid £576 for working a 48 hour week and £576 for working a 60 hour week is either so desperate for a job that you need to worry why no one else has employed them, or illiterate and doesn't understand what they have signed up for.

Would you be prepared to work unlimited hours for no pay?


you misunderstood me-
all overtime will be paid but not x1.5. will remain x1. so any overtime hour will be paid same as normal working hour. hope that clarifies.
 
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Newchodge

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Nov 8, 2012
16,221
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Newcastle
I certainly misunderstood you. Overtime is time additional to contracted time. The rate at which overtime is paid is a contractual matter between you and your employee. If the contract states that they are employed for 48 hours @ £12 per hour, that is fine. It can also state that additional hours may be required, which will be paid at £12 per hour. It can also state that, if additional hours are required (with x amount of notice) the employee cannot refuse the additional hours.

When you get your staff I strongly suggest that you get professional help in drafting the job offer and contract documents.
 
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ethical PR

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Apr 20, 2009
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I agree with @Newchodge from this and your previous posts it certainly seems like you will need professional help with your drafting employment contracts, policies and processes and running your wages.
Are you going to employ someone with those skills,.
If not get some professional help from an HR person/employment lawyer now .
 
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