Employment pay advise

[Poppiesway]

Hello.. hoping someone can help.
I've been employed by a private company for 6 years, along with 1 other worker. I am highly qualified and have higher qualifications (pgDIP) than my colleague (pgCERT). Today I discovered that 2 other companies are paying over £20 a hour more than what I am on, for the same job. I mentioned this to an old colleague/friend (who used to work for the same company but left to go back to NHS) who mentioned that the other staff member is on that higher amount.

It turns out that several years ago the other worker was given a pay rise but I wasn't.
Today I asked my employer for a pay rise to match the going rate but they have said no.

As yet the manager does not know that I now know that I am on a lesser wage than the other person (we both do the same job for this company)

They have told me they cannot match the going rate because the other companies employ the workers as self employed which is cheaper and means they don't pay as much tax which saves them money.

They have also said the effect of the new pensions next year are going to affect them (neither of us earn enough for them to pay us a pension - we work approx 16 hours a month for them and earn approx £3k a year from them) hence they cannot give me a pay rise.

My question is;
Can they unfairly give one employee a pay rise and not the other for the same job? Keeping it quiet so I don't find out!

How does being classed as self employed make it cheaper for a company than employing someone? Surely as they still pay the same rate it's still the same outgoing for that person?

It is a very small business.. all employed part time with minimal hours so we're. It entitled to sick pay or holiday pay etc. I'm just fuming that the other person is on £20 an hour more than me. (We never usually cross paths and work else where so not likely to meet)

Of course they can pay different rates for the same job.

If you don't like it get a job elsewhere.

Of course they can pay different rates - as long as the reason you get less isn't because you're pregnant, disabled etc.

An employer has to pay employer national insurance for their employees, as well as you paying NI, they also pay you holiday pay. Self employed have to pay those themselves, do own tax returns etc hence why they claim a higher rate as a rule.

Employees qualify for holiday pay, maternity pay and in some cases company sick pay. There is also the potential costs of tribunals. Add on the general admin and management costs then you can usually add on at least a third to an hourly rate in employment costs.

Self-employed people fund their own holiday, sick, maternity, pensions and tax and don't cost the company in payroll.

And as the other posters have said, there is no requirement for an employer to pay the same rate for the same job, as long as the reason behind any discrepancy is not discriminatory.

I was told I don't do enough hours with them to claim holiday pay or sick pay etc.

I've not been getting wage slips and have had to ask them for evidence of income for my bank. I get a p60 with how much tax I pay but don't know if I've paid national insurance with them at all. I was only last week told of a form I can use to check I am paying enough or too much nat ins after chatting with a rep at work.
I do work full time in nhs but being a single parent earning extra privately 2
Days a month helps me out a lot. It's frustrating that I could have reduced down to one day a month for same amount of money. Yes it's easy to go get another job in my particular role but after working and helping them out for the past 6 yrs to then discover they've not been treating us both equally is disheartening.

You can only work 1 hour per week but still be entitled to holiday pay. (5.6 hours per year if you really did work 1 hour per week)
Sick pay you do need to earn a minimum amount.

Balletgirl thankyou. In 6 years I was told I wasn't entitled to holiday pay!! Just calculated that this year so far I'm entitled to 7.5 hours so far.

Are you a woman and other employee a man?

No both women.
I have now been told that I can have a pay rise but they won't be able to afford to pay the two receptionists so they will have to leave.

What????? Assuming they've been there more than two years they will need toale them rdundant not just say they'll have to go!

You might not be paying Ni if you earn below the monthly limit see -www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions#class-1-national-insurance-thresholds

You are legally entitled to a payslip see - www.gov.uk/payslips

Congratulations - you have six years holiday pay due to you.

Also - no need to make receptionists redundant the owners can just reduce THEIR income