We have a member of staff who when she started was unsure of how many hours per week she would do, but it would probably be 20 hours a week. She was taken on at £15,000 per annum pro rata.
As the hours weren't definitely set at 20 per week, we put her on £7.21 as an hourly rate and each month we work out how many hours she's worked per week and pay her based on this.
The employee is now saying that she should have a monthly pro-rata'd salary.
First is how we are currently calculating her pay correct? and can we just pro-rata her salary on a monthly basis? what happens on the off chance that she works more or less hours.
£15k/52 = £288.46 a week.. at £7.21 an hour, suggests that it based on 40 hours pro rata? Is that what a full time worker is completing? (Are you adjusting for lunch hour? I am not sure if an empployer has to pay for the lucnh time or not, hope someone clarifies that!)
If she is doing 20 hours consistently, then she is doing half the time, half the pay - and so you could pay £7500/12 to keep her happy = £625 per month.
Now, if you go with that £625, the hours she actually works would be another story! I would suggest that, if she wants to go on fixed pay, she does fixed hours...or, if she works less one week, she makes it up the next - you would have to be careful that she didn't under-work all the time, and never give back! Get it in writing if you are going to change things about. Revise her employment contract and make it clear when discussing.
I am not a payroll bod, and so I may have the wrong kind of thinking, but thats the way I would look at it
40 hours is high, and usually it's manual workers who will do those sort of hours. Generally an office worker will work 35 or 37.5 hours a week, depending on length of lunch break.
I make that either £8.24 or £7.69 an hour. If the hours are generally around the 20 hour week then I see no issue with paying a pro-rata salary (1), but if the hours vary on a regular basis I would, if an employer, opt for an hourly rate.
(1) £15000 / full time hours x 20
-- Edited by Leger on Wednesday 18th of March 2015 10:18:59 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Thanks for confirming the lunch hour situation, for me.
40 seemed high to me, too... but there's no indication of the business activities, and I wondered if hours might even be spread over 5.5 or 6 day week?
Hopefully now, the OP can make some progress with our suggestions :)
