Employers cut costs by paying younger staff less

Shop
workers’ union Usdaw has
highlighted a trend among some employers to pay workers aged between 18 to 21
less money than their older colleagues.

While
welcoming increases from 1 October to the National Minimum Wage, including the
first minimum rate for 16 and 17 year-olds, Usdaw has called on the Low Pay Commission to
examine the practice of some employers that has resulted in a pay cut for
younger workers.

Instead
of paying one rate of pay to all workers aged 18 and over, some companies are
introducing a lower rate for 18 to 21 year-olds and a higher rate for those
aged 22 and over. This is allowed under current National Minimum Wage
regulations.

Paddy
Lillis, deputy general secretary of  Usdaw,
said: "The vast majority of employers pay the adult rate at 18, but,
recently, several employers have been introducing lower pay for 18 to 21
year-olds. Not because these young people do not work hard, or as well, but
because companies can cut costs by paying them less."

From
1 October 2004, the new minimum rates of pay
will be:

–  £4.85 per hour (up from £4.50 per hour) for
workers aged 22 and over

–  £4.10 per hour (up from £3.80 per hour) for
workers aged 18 to 21

–  £3 per hour for workers aged 16 and 17 (the
first time that this age group is covered by the National Minimum Wage)

By Mike Berry

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Email

This field is for validation purposes and should be left unchanged.

Δ