Is it legal to pay people a lower rate because they are on probation?

[sophierosie]

I am slowly dragging a v small charity into the 21st century and whilst setting my budgets for next year I've noticed a query on what we pay some of our freelancers.

Basically, our services team are classed as self employed and put in a monthly claim according to how many hours of service delivered. I want to recruit a new member to the team and have noticed that a new member would be on a lower hourly rate (£12.50)during their probation period. This would then increase to £17.50 once they'd completed the six months.

Now, I'm not entirely sure if this is correct/legal? Can someone confirm?

My first question would be are they genuinely self-employed, see here, might be worth checking.

Increasing salary after 6 months, as long as they apply this rule across the board, ie no discrimination.

sorry, increasing salary after 6 months is fine

Thanks Flowery

The whole self-employed/employed issue is also one that I am struggling to deal with. Basically without putting too much info out there one of the services we provide is psychotherapy and all therapists are self-employed and make a monthly claim and pay their own tax etc. This is 'how it's always been done' - and far as I'm aware how other charities working in this way work.

Have you tried answering the questions on the HMRC site with respect to their employment? I would try and sort it out if you can, could leave the charity very vulnerable if it's wrong, regardless of it being a longstanding arrangement. Speaking as someone who has dug a charity out of a hole in the same situation....

I agree with Flowery (as almost always). The lower rate during probation sounds fine, but the 'self employed' bit sounds potentially iffy...

I know - my gut feeling in terms of good practice and what I would expect to see (esp when I was a funder) is that actually they are employed by us rather than self employed so we should be employing them on an employed contract. They do sign up to a contract which outlines what we will provide, how they expect to work, how they will invoice us etc...

I've been there for a year now and have spent the last year getting used to the org, understanding how it works, and observing what needs to change and now I feel is the time to make the changes! But am expecting some resistance as there sometimes is in small charities - fgs, just before I joined they took someone on without giving them a probation period as they'd worked there before (some 10 years ago) and they knew them! I soon reintroduced that!

I know, I know, that's why I'm so keen to move on sharpish!

tbh, I'm tempted just to leave as I know it's going to be a real uphill struggle, with absolutely no reward for all my hard work! The only other jobs in my locality are way below my current level - am not at all bothered about taking a pay drop as really think its going to be a nightmare making all these changes

It's a tricky one. As so often is the case, you need to work out what's the best outcome for you. If moving elsewhere means a dip in your level, you need to be aware (which I am sure you are, and have considered) of the consequences of that in terms of your income but also your career plus your own potential frustration at doing a job that is beneath you.

You need to weigh that up against the problems you are having where you are. The grass isn't always greener, it may be worth pushing these changes through to get (hopefully) a sense of accomplishment and some good experience in the hope that both of those things will help in the future.

Alternatively, depending on what is important to you, moving somewhere else at a lower level with (hopefully) less stress, might be the better option.

I'm sure I am stating the bleeding obvious!

I know - the thing is that I'm going to retrain in the next 3-4 years so do I do something that is a lighter touch or do I continue to 'challenge' myself in the meantime. If I did make all the changes my job would be a near perfect dream...its just getting there thats the hard work! My trustees all are all retired and haven't been in ft work for a long time and don't really have a feel for how a charity should be run in 2008!