As you may be aware, the minimum wage for experienced adult workers will reduce to €7.65 per hour on 1 February 2011. An experienced adult worker is an employee who has any work experience in any two years after turning the age of 18.
Employees currently on minimum wage
The wage rate forms part of an employee’s terms and conditions of employment. Therefore an employer cannot reduce an employee’s wage rate from €8.65 to the new minimum wage rate of €7.65 unless the employee agrees to the change.
If an employer does change the pay rate without agreement, they could find themselves subject to a claim such as a Payment of Wages claim or a Breach of Contract claim.
New employees
Employers can apply the new minimum wage rate of €7.65 per hour to new employees starting on/after 1 February 2011.
Industry specific wage rates
Certain industries have specific agreements (such as REA and JLC) on rates of pay and these will need to be applied notwithstanding the change in minimum wage.
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Update: Minimum wage at €8.65 per hour from 1 July 2011
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Related Post:
is it true that employers are letting go of temporary staff and recruiting new ones that they can pay at a lower rate since the introduciton of the new minimum wage of 7.65 on feb 1st 2011!?