Living wages are paid

What you must do - law 6

All piece rate workers

General Employment Law

  • If a worker is paid by the piece, their wage must not be less than the appropriate minimum rate for the actual hours worked over the pay reference period. If their piece rate earnings fall below the minimum wage, wages must be made up to the minimum rate for the hours worked.
  • Employers must set a fair piece rate which enables workers of an average speed to earn 120% of the minimum wage. This does not apply to agricultural workers.
  • This means that most piece rate workers including those who work a little slower than the average worker can expect to receive the minimum wage.
  • You must create a Fair Piece Rate Agreement, which workers sign at the beginning of every work period to show that they agree with the rate you have set.

Agricultural Wages Order

  • If workers are paid by the piece, piece rates must be set to ensure that workers get at least the minimum wage per hour for normal and overtime (inclusive of all OT premiums).

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