Annual Pay Rises

[Le Chat]

Is it lawful for a large firm to give an annual pay rise of 5% to one part of its staff and only 2.5% to others?
All staff in varying job roles, levels of responsiblity and wage levels with just this one level being given this lesser rise, although they are not on the lowest pay scale within the firm.

[Old_Geezer]

Would have thought it was up to the company whose wage they raise and by how much. What do your contracts say ? See your union rep.

[teacake44]

There's no law that I'm aware of that can dictate what pay rises a company give to who, when, and how much.

[THECORBYLOON]

Perhaps the employer is trying to reduce the gap between the scales?

[hereIam]

When I worked, the bosses gave annual pay rises as they saw fit, they were all different, but at least we always got one !

[ummmm]

I can't see a problem with it.

My daughter has had 3 pay rises within a year. The person at the desk next to her hasn't. It's about performance.

They don't have to give you a pay rise at all.

[New Judge]

I find it odd that anybody should ask whether such practice was "lawful" or not. I'm just curious - do you really suspect there may be a law preventing companies from giving some of its workforce a different pay rise to others?

[TonyV]

We used to get a fairly low company wide rise and then a performance related one.

[Buenchico]

Unless there's a wage bargaining agreement in place (e.g. through a trade union) for one ore more sector's of a company's workforce, every employee's contract with his/her employer is entirely independent of that of any other employee and the employer is free to pay everyone diffeently. The only exceptions are where there's a breach of equality legislation (e.g. if men were being paid more than women) or if part-time employees are treated differently to full-time ones.

In the City of London's financial businesses it's not unusual for people doing exactly the same job to get vastly different pay. For example one employee might be working for £40k (because he joined at the starting level and hasn't had any significant pay rises), whereas the guy sitting at the next desk and doing exactly the same job (but who was head-hunted by the company from a rival firm) might be getting £200k. It's all perfectly legal and long may it remain so!