Employment Salary question

JoeyT1

Hi,

Question is around the illegality of paying new starters into a company more than established members of staff.

If someone is paid say €14hr for doing Job A. Made up of, a basic of €12, commission of €1 and KPI of €1 = Total €14.

Can the Employer hire someone for that same role on a higher basic, so say basic of €13 + KPI of €1 = Total €14. The total pay for both is the same.

Now say theirs a Job B. It's a different role altogether, can the employer advertise that new role at an hourly rate of €12.50? It's more than the basic of Job A.

Also, the minimum wage increasing to €12.70 in January. Does the basic for Job A legally have to increase with that?

The WRC looks at this kind of thing as far as I know. And do spot checks? Can they be asked to do a spot check on an employer? What is the punishment for breaches?

I think thats all the detail needed.

Thanks for any replies.

deirdremf

If it's a private company, I'd say they can decide to contract different people on different terms.

Regarding minimum wage, yes, it will go up for everyone. If someone is being paid under the minimum wage they could take you to the WRC alright.

CramCycle

Nothing illegal about it. Established workers shouldn't tolerate it if they are worth more than the newcomers but management are under no obligation to do anything.

As for the minimum wage for worker A, their basic should go to €12.70.

JoeyT1

https://www.boards.ie/discussion/comment/121329977#Comment_121329977

It is illegal.

I'm just not sure about the other Job A where the basics are different but the totals are the same.

And whether it applies to other new role with higher basic.

bennyx_o

How is it illegal? Companies often have people on different salaries and wages in the same position. Wages and salaries can depend on many factors

JVince

https://www.boards.ie/discussion/comment/121330072#Comment_121330072

There has to be some sort of differentiation.

Experience is usually what is used or a slightly different description. Eg, retail floor supervisor, department supervisor, customer service supervisor.

CramCycle

https://www.boards.ie/discussion/comment/121330057#Comment_121330057

It's really not, happens all the time, someone interviews who is good for the role and you need the post filled. They ask for X which is above what someone else doing the role is getting paid and you accept that you need to pay that. Happened to me in my first job where someone hired after me got paid more because they asked for it. I didn't know for ages, when I did, I accepted it but did ask for more at a later point once I felt I was more solidly placed.

Happens in public and private, but in the public sector it's just an offer higher on the scale (and only in certain areas).

whomitconcerns

Definitely not illegal. Such is life.. You can complain but no obligation for them to change anything. They can pay the new person 50/hour if they feel like it and be perfectly fine.

Jim_Hodge

https://www.boards.ie/discussion/comment/121330057#Comment_121330057

It's not illegal. What statute do you think is being broken?

They can pay who they like what they like, as long as it's above minimum wage.

CramCycle

Just to be clear, it maybe amoral if the jobs are identical but it is not illegal. Once it meets the terms of employment law and whatever is in a person's contract, that's it.

Experience being what it is and presuming you are the established worker @JoeyT1 , have a think about how valuable you are to the company, more importantly, your direct line manager and how easily you can get employment elsewhere. If you think you are valuable, more so than the new hire and you have the safety net of being highly employable for similar elsewhere, then ask for a bump and let them know that you are doing the same job and you'll have to look at going elsewhere if you are not matched up at the very least. I'd do it now but be careful, not all jobs and industries are welcoming of such behaviour.

Seve OB

Illegal 🤣😂

bucketybuck

https://www.boards.ie/discussion/2058321252/employment-salary-question

It is absolutely not illegal to pay new starters more than existing staff.

AndrewJRenko

It would be illegal if the reason for the difference in salary is one of the protected nine grounds in equality legislation - age, gender, disability, ethnicity etc.

Otherwise, it's perfectly legal.

chrisd2019

https://www.boards.ie/discussion/2058321252/employment-salary-question

Nothing illegal or unusual here, indeed it is in many cases why people move, often a new employer will value you more than your current employer. Experience and long service is often given lip service in the real world.

3DataModem

Everyone saying it is "immoral" consider the following.

You employ a bunch of people with an in-demand skillset for 50k per annum.

The skillset is less in-demand all of a sudden, but you still want to hire more of those people, say a team of 20 to build a new product. You can get them for 40k.

Should you

(a) move everyone to the market rate of 40k?

(b) overpay the new hires with 50k?

Some companies benchmark their salaries at the market, and therefore choose option (b) but the guys on (a) won't be happy when their next few years raises are little or nothing.

And overpaying the new hires limits the ability for the company to give raises etc in future years.

bobbyD1978

https://www.boards.ie/discussion/comment/121330562#Comment_121330562

The wrong way around though. It's different.

Victor

"Also, the minimum wage increasing to €12.70 in January. Does the basic for Job A legally have to increase with that?" - certain things are included in minimum wage, check carefully.