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ARTICLE ORIGINALLY PUBLISHED May 2024

Rates of Payments

In this feature we will look at a range of questions relating to staffing issues. The law covers some and some are discretionary and allow you, the employer, to decide.

Question 1

If staff are sick how much statutory sick pay do they receive?

There are a range of conditions to meet to become eligible for SSP. It is not normally payable for the first three days of absence. however, the rate is due to increase to £116.75 in April 2024.

Question 2

I am four months pregnant. How much am I likely to be paid during my maternity leave?

For the first 6 weeks you receive 90% of your normal pay and then 33 weeks of Statutory Maternity Pay. In April 20024 the weekly rate increases £184.03 or 90% of your average weekly earnings (whichever is lower).

Question 3

I am closing my salon in April what termination payments are the staff entitled to?

I am assuming the salon is to close rather than being sold, in the latter case, the staff simply transfer to the new owner.

Your closure is effectively a dismissal by reason of redundancy and you might need some professional guidance regarding the process to be followed. Employees are entitled to one weeks’ notice for each year of service (subject to a maximum of 12 weeks pay).

In addition, if they have 2 years service they are also entitled to a redundancy payment that is based on their age and length of service and age. Redundancy can be very expensive, at its extreme. If you had an employee with 20 years service over the age of 41 then, subject to the weekly maximum wage of £643 you could have to pay 30 weeks pay. Remember this is the maximum and workers aged over 41 receive one and half weeks pay for each year of service so they are more expensive! In addition in this example the employee would also be entitled to 12 weeks notice.

Question 4

Can I have a clause in my contract allowing me to recover training costs if staff leave? How much could I recover?

Yes, the timescales need to be reasonable and it is recommended that employees are aware of the sum involved before they commence training. Some Salons have a phased recovery, for example 100% in the first year and 50% in the second year. There is no statutory minimum or maximum figure that can be recovered.

The clause is often not enforceable if the employee is dismissed and you should reserve the right to recover the monies from the final pay. Always liaise with the employee first, it shouldn’t be a surprise.

Question 5

Am I entitled to paternity pay?

The statutory weekly rate of Paternity Pay is £184.03, or 90% of your average weekly earnings (whichever is lower). Any money you get is paid in the same way as your wages, for example monthly or weekly. Tax and National Insurance will be deducted. This is the 2 weeks leave (OPL) that all eligible employees are entitled to after the birth or adoption of a baby. OPL must be taken not later than 56 days after the birth or date of placement.

To be eligible for statutory paternity pay, you must be one or both of the following: the father of the expected baby, married to, the civil partner or partner of the mother or birth parent – this includes same-sex partners.

Question 6

One of my staff have been selected for Jury service. What are my responsibilities?

To all intents and purposes you would normally release them. There are some exceptions but typically employers have to agree to the release which is for up to 10 days. However you do not have to pay them as employees can claim loss of earnings and expenses for travel and food from the court. The employee needs you to sign a form to show their "net" loss of pay. However the daily allowance is:

up to £64.95 to help cover your loss of earnings and the cost of any care or childcare outside of your usual arrangements
£5.71 for food and drink
the cost of travel to and from court

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