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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Pay cut at work

36 replies

Scaredycat259 · 17/02/2022 09:16

I cant find any information online about this so I'm hoping someone can help.
We have just had our annual pay review letter at work.
I am a team leader which means I am paid an extra £1.66 an hour.
Normal staff are paid at minimum wage which will increase in April to £9.50.
Our Directors have announced that Team leaders wage will remain at the same rate £10.57 an hour, they are effectively removing the 59p per hour living wage rise from our extra £1.66 an hour reducing it to only £1.07 extra an hour.
I think this is totally unfair of them to expect the same responsibilities for less pay yet my staff who report to me will get their raise.
I can find anything online as to whether this is illegal or just morally wrong?

OP posts:

Dizzywizz · 17/02/2022 09:18

Isn’t it just not getting a pay rise? I worked for a lettings agent before and we often either didn’t get a pay rise, or it was less than inflation. I was shocked as had previously been in jobs where the increase was always at least inflation

BritInUS1 · 17/02/2022 09:18

Well the minimum wage legislation is a legal requirement so the company has to give these rises

Other pay rises will be subject to your company and your terms, I would check your contract

ohhooh · 17/02/2022 09:18

How is it a pay cut if you're remaining at the same pay? 🤔

I don't think it's illegal as you're still earning over the minimum wage, not having a pay increase hasn't taken you under the threshold for that?

FitAt50 · 17/02/2022 09:21

Its certainly not illegal, but is rather poor form.

Dishwashersaurous · 17/02/2022 09:21

The legal requirement is not to pay anyone less than the minimum wage.

The firm has done this.

What they have not done is maintain existing differentials. There is no legal requirement to do that.

Much of the public sector didn't get a pay rise for a decade. During that time the minimum wage continued to go up and the differentials were squeezed.

There is no legal requirement to give someone a pay rise other than minimum wage obligation.

cuno · 17/02/2022 09:23

I was in a similar position as a manager before and only ended up on 20 pence more than the people I managed because of this after a few years of minimum wage rises, so it could be worse!

It's a pay cut in real terms yes because of inflation and minimum wage going up, but not a literal pay cut. Lots of people in the same boat and it's perfectly legal.

sweeneytoddsrazor · 17/02/2022 09:25

You haven't had a pay cut, your pay has stayed the same.

Cleothecat75 · 17/02/2022 09:25

Whilst it’s not illegal to not give you a pay rise, I don’t think it is morally right. You will be doing more work/have more responsibilities, but the gap in pay between you and those you are managing is much smaller. It’s a rubbish situation, but one I think lots of people will find themselves in.

Dishwashersaurous · 17/02/2022 09:26

And as I said much of public sector have had real terms pay cuts for a decade because of pay freezes. It's completely legal.

However, there is a massive labour shortage in many sectors at the moment so you might be in a good position to move

littledrummergirl · 17/02/2022 09:38

I've been saying this since minimum wage was introduced. All that is happening as it increases is that prices go up to compensate, but as people earning slightly above don't get that payrise more people end up on minimum wage.
A fairer way would be to set a limit of 10x salary between the top earner and the bottom.

To answer your question, no it's not illegal. Having been in your position I decided that I wasn't doing the extra work involved for the difference in pay between the levels and found a new job.

formalineadeline · 17/02/2022 09:42

How is it a pay cut if you're remaining at the same pay?

In general terms, inflation means a frozen salary is worth less and less each year.

In this case, the op's differential for extra responsibilities has effectively been cut.

FluffyBooBoo · 17/02/2022 09:56

Can the business afford to hike everyone's wages by that much? It's a big pay increase that they need to fund, while everything else is also getting more expensive.

Bigfathairyones · 17/02/2022 10:00

Definitely poor form, but if the company cannot afford it, it's a simple as that. The NMW has led to a concertina effect in salaries, with the lowest salaries having to rise and therefore matching or even overtaking those of the people above them. My employer has had to increase everyone, although the salaries are definitely becoming closer, which is not ideal, but they just can't afford to increase all salaries in step, which is what this really needs. It's a difficult situation for all to be fair.

Original poster

Scaredycat259 · 17/02/2022 10:00

My point is that they are cutting my team leader uplift from £.166 to £1.07, my staff in non team leader roles will get a 59p rise.
This has happened before at this company a few years back for 3 years in a row.
Ifthistrend continues we will be back in the same position.
This is affecting 4 team leaders and 2 supervisors.
There was never any contract stating the uplift.
Normal staff currently get a 25p uplift that was initially a £10 a week attendance bonus. They will no longer get that, so they're living wage rise will effectively work out at 34p and hour.
To say the mood is low in the factory and warehouse today would be a vast understatement.

OP posts:

InTheMiddle23 · 17/02/2022 10:04

I'd be looking up their accounts. If they can't afford an equivalent raise, start looking elsewhere

Original poster

Scaredycat259 · 17/02/2022 10:09

I've seen their accounts on Companies house, and exactly how much each shareholder has taken, way more than the £13k it would cost per year to keep the pay uplift.

OP posts:

MrsTimRiggins · 17/02/2022 10:09

Yea, as the others have said, it’s not a pay cut but it is pretty crap.
Are you otherwise happy in your workplace and is your wage enough as it is? Unless the answer to both is a solid yes, maybe think about looking for work elsewhere.

mrsm43s · 17/02/2022 10:11

Only people on minimum wage are entitled to the uplift in minimum wage.

Your salary is well above minimum wage, so therefore no uplift is due.

It would be nice if the company could give everyone a generous pay rise, but they are either unwilling or unable to do so. This is entirely their choice.

Someone who isn't on NMW has no entitlement to a pay rise just because NMW has risen. If you don't think the difference between your pay and the pay of the NMW staff is worth it for the extra responsibilities, I'm sure you could ask to step down from your supervisor role, and join your NMW colleagues.

It's always disappointing to not get a payrise (I'm Public Sector, so have been in this position year after year after year), but you don't have an entitlement to one.

Dishwashersaurous · 17/02/2022 10:12

It's rubbish. But unfortunately it's completely within the law.

Maybe time to start looking for a new job

cookiemonster2468 · 17/02/2022 10:12

Well it's not illegal, and similar things are happening across the board to be honest. Most people I know are not getting a pay rise that is anywhere near in line with inflation.

If a company can afford to give some people a pay rise but not all, then sorry but I'm on board with that going to the lowest paid.

Your choices are probably suck it up or find a different job.

cookiemonster2468 · 17/02/2022 10:14

@sweeneytoddsrazor

You haven't had a pay cut, your pay has stayed the same.

Freezing someone's pay is essentially a pay cut because of inflation.

DePfeffoff · 17/02/2022 10:21

Time to look for a new job.

Comefromaway · 17/02/2022 10:25

Perfectly legal. You are just not being given a rise in line with inflation etc.

Sally872 · 17/02/2022 10:26

Not illegal but I would not be happy. Not sure about your area but here warehouse staff are in high demand so I would definitely be looking elsewhere.

Original poster

Scaredycat259 · 17/02/2022 10:32

Infill be on maternity leave later this year , and this has helped push me more towards not returning after 24 years working there, sad , but they don't know how to treat staff, unless you are related or friends of the MD,who can also afford a brand new BMW for the girlfriend working here.
I'm simply trying to fight the corner for every other poor bugger here who gets shafted.
I feel like Clark Griswald kicking off at his boss

OP posts:

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