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Tales of an HR Services Expert – Day 14: Minimum Wage

Written by Carolyne Wahlen

Doing employees a favour doesn’t always work

I was approached by a company to help with a situation that was baffling them.

They had employed someone who wasn’t really as experienced as they would have liked, but they liked him and created a job for him.

However what they also did was pay him less than minimum wage.

All went well for a couple of years. Then out of the blue this guy turns around and says that he has been advised that he is entitled to £5000 for unlawful deductions from earnings, i.e. that he hasn’t been paid minimum wage.

There is no defence in these cases. Either you have paid it or not. There is no justification for not paying it.

The boss was astounded and possibly a little naïve. He had given the guy a chance to gain experience and a job, but he still needed to pay minimum wage. If he couldn’t afford to do that for a full time job, then he should have offered part time. Or nothing at all.

We all do favours for people, trying to help them out, and it pays to remember the official rules for this when helping employees. I bet that if I had asked the boss at the beginning of the relationship whether there was any danger, he would have said that this guy would NEVER do anything like this. They never do, until they do!

PS And they came to an agreement on the outstanding money, helped by the fact that this guy conveniently found a better job to move to, thanks to the experience he gained at the first company!

Filed Under: Business, Employment tribunals, Getting things done, Managing Employees, Minimum wage, Recruitment

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About Carolyne

Carolyne has run a successful business since 2003, is a well-respected speaker, and author of all things HR. There are many, many business owners across the country who have had their very stressful employee issues magically disappear because they’ve teamed up with Carolyne and Gap HR.

Why Gap HR?

We exist to help you stay legal, compliant and profitable, without shelling out for an in-house HR manager. Over 180 clients benefit from the experience and expertise of the Gap HR team.

 

Call us on 01491 598 600

Email me on cw@gaphr.co.uk

 

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  • If you are an employee and feel that you have been treated badly, then we strongly advise you to contact ACAS:

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“We have been using Gap HR for several years now. Carolyne and her team are professional and efficient and we would not hesitate in recommending them for small businesses. It is a great relief to know we are supported by them for our HR advice and paperwork is kept up to date.”

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“I have been working with Carolyne and her team for 6 years now , when I first purchased 2Excel Logistics I found the HR scary as I wanted to do the right thing for my staff , with Gap HR on my side this all seemed easy and we have gone from 9 staff to 28 with no hassle what so ever , thank you to all at Gap HR”

Justin Wilkie, 2Excel Logistics

“So pleased to be working with Gap HR. They’ve straightened us out in no time. Their pricing is clear and they really know what they are talking about.”

Ashley Lewis, Wallingford Tiles and Bathrooms

“We are a growing company but do not have facilities in house yet for HR services in house. Gap HR is our go to service for all kinds of advice about HR for our business and we have found them very reliable, communicative and efficient. Would definitely recommend them”

Helen Gordon, Kitecreative

“Carolyne and team continue to provide great support to our business, with quick and accurate responses to help with our various HR needs.”

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“Gap HR have been at our side for a number of years now and are a great help in dealing with our HR needs”

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