What if one of our employees is worried that their benefits will be affected by us introducing the Living Wage?

Fri, 10/31/2014 - 19:33 -- Sarah Vero

Employees in receipt of benefits may have their benefits reduced as their wages rise. In the vast majority of cases the benefits will "taper" off. So the employee will not be worse off, just better off by only a small amount

There are no known cases of employees being worse off as a result of receiving the Living Wage for benefits and allowances where there is a ‘taper’ in place.

What if I work in shared building and some workers are employed by the building management company?

Fri, 10/31/2014 - 19:06 -- Sarah Vero

All directly employed staff, regardless of time spent at work, as well as regularly contracted staff who work for 2 hours or more a day, in any day of the week, for 8 or more consecutive weeks of the year must be paid the Living Wage.

You may have cleaners that work on your premises, that are shared with other tenants. This first step is to find out from your building management company whether the cleaners are paid the LW.

How far down the supply chain should it go?

Fri, 10/31/2014 - 19:00 -- Sarah Vero

The Living Wage applies to all your directly employed staff, as well as regularly contracted staff. The exact definition is those contracted staff who work 2 or more hours a day, in any day of the week, for 8 or more consecutive weeks of the year. The Living Wage does not apply to contractors that supply your organisation with products e.g. stationary suppliers.

We recommend that you communicate your Living Wage commitment to everyone you do business with, and encourage them to consider implementing the Living Wage.

How do I approach my contractors?

Fri, 10/31/2014 - 18:52 -- Sarah Vero

You should let your existing and any new contractors know that you have decided to become a Living Wage employer as soon as possible. We can provide a sample letter if you become accredited.

You should approach positively from the point that you are a client that requires a service and the service you require is Living Wage staff. Your contractors may have heard of the Living Wage, but if they have not you can send them some of our information or direct them to the website.

What about third party contracted staff?

Fri, 10/31/2014 - 18:48 -- Sarah Vero

In order to be accredited an employer must pay all directly employed staff the Living Wage and have an agreed plan in place for third party contracted staff such as contracted catering, cleaning, security, parks or ground staff. Where contracted staff cannot be moved onto the Living Wage immediately, organisations can choose to roll out the Living Wage across third party contracts over time, as the contracts come up for renewal. This is called phased implementation. The contracts are included in the licence agreement as 'milestones'.

What is the Living Wage as an annual salary?

Fri, 10/31/2014 - 18:45 -- Sarah Vero

We don’t publish the Living Wage as an annual salary as the requirement is that the Living Wage is paid for each hour worked.

You can work out the annual salary by calculating LW x hours worked per week x 52.

For example the UK Living Wage as an annual salary might be £9.00 x 37.5 x 52 = £17,550 and the London Living Wage as an annual salary might be £10.55 x 37.5 x 52 = £20,572.50

Where a salary calculation is used accredited employers must also ensure that they pay the Living Wage for each hour of over-time worked.