New (and now ex) employee

jaipal2004

Well-known Member
Hi,

taken on an employee who has since been shown the door and unsure of how to handle this situation:

They were contracted to do 40 hours per week, monthly salary £2,000 gross (£24k PA)

Does that mean any extra hours (ie. in the case of a 5 week month) are taken as TOIL?

In my simplistic view of the world, I thought £2k was per month, as over the year it'll balance out? ie. some months will be shorter and others longer?
 

PSM1

Distinguished Member
I think you either have a yearly salary (which is then divided by 12 to give equal monthly payments hence win on some months and lose on others) or you pay by the hour (in which case you pay different amounts each month depending on what they have worked). Which ever you use they should end up with the same annual salary.
 

johntheexpat

Distinguished Member
No month has 5 weeks. A month may have five Fridays, for example, but every month has between 28 and 31 days.
£2K per month is £24K pa and that's all you need to know.
 

jaipal2004

Well-known Member
I think you either have a yearly salary (which is then divided by 12 to give equal monthly payments hence win on some months and lose on others) or you pay by the hour (in which case you pay different amounts each month depending on what they have worked). Which ever you use they should end up with the same annual salary.

This is what I thought but I wanted to check with the masses :)
 

hippo99

Distinguished Member
In a previous job I left mid month, & they pro-rated it by yearly salary divided by 52 weeks.
 

Member 55145

Distinguished Member
If they have worked between the 1st and the 31st you pay them a months salary.
The tricky part is deducting if they didn't work a full month.

Don't forget notice periods.
 

nheather

Distinguished Member
What I have seen at the companies I have worked at.

Salary is contracted as annual amount.

Regular payment is then made as 1/12 if monthly paid or 1/52 if weekly paid.

If you are there the whole year that all works out.

But if you start or leave part way through the year, the first or last payment is adjusted to account for the actual days worked that year.

Note also, that when you leave part way through the year, there will also need to be an adjustment for annual leave and you will have probably taken too many or too few.

Cheers,

Nigel
 

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