Is it legal not to award pay rises?

[fats28]

The title says it all really, are you legally entitled to a pay rise of some amount every year or not? I've just googled it and I don't seem to be able to find anything.

 

[pure]

As far as I'm aware there is nothing which says you should have to give a pay rise. There are many examples in the past of companies which have opted for pay reductions rather than redundancies.

Are you asking as an employer or employee?

 

[Rach]

yep, as far as i am aware it is legal. Working in local government we used to get a yearly increment on our wages, but now we have been outsourced, we dont get a yearly pay rise, we have to meet our objectives to be considered for a pay rise.

 

[fats28]

An employee, I've been here 3 1/2 years and not had a raise but tbh I aren't too bothered because I'm looking for another job anyway. My colleague has been here 10 years and not had a rise for 8yrs, which means with inflation he is worse off really. I was just wondering if employers are obliged to give a rise after a certain period of time or not.

 

[pure]

No they don't have to although if they are making a profit and want to keep quality staff then it would be in their interest to do so. Have either of you actually asked for a raise?

 

[Trinity]

I've been googling too and this is the closest response I could get:-

If, as you suggest, the contract and handbook are silent on the subject of pay rises, then it becomes a matter for employer's discretion. There is no obligation to award pay increases, either on the basis of increased cost of living or on merit/performance.

The second part being the most relevant to your colleague. The whole response can be found on :-
What’s the answer? Cost of living increase - 03 Nov 2005

The original question was along the lines of is everyone entitled to a cost of living pay rise even if they've only been at the company less than a year. It's not the exact same question as yours but does mention if there is no details in your contact then you're not entitled.

HTH

 

[fats28]

Thanks for the link, as has been said you would think if they wanted to keep good staff they would do. My colleague asked in March, they said they'd get back to him and nothing said so far.

 

[Noodle]

I don't believe that employers are obliged to reward their staff with annual or other increases, unless of course the employee has a Contract of Employment which states to the contrary.

I suppose you could speak to someone at the Citizen's Advice Bureau if you need further clarification though.

 

[angel fingers]

Thanks for the link, as has been said you would think if they wanted to keep good staff they would do. My colleague asked in March, they said they'd get back to him and nothing said so far.

heck 8 years is a long time to go without a pay rise. is this the first time hes asked for one.

 

[marioned]

If the wage they were giving was below any increase in the minimum wage, then they would have to in that situation. Not sure about any other situation.

 

[yogi10]

sadly you are not,you are entitled to a salary review each year but his might not result in any pay.of course you are protected by the national minimum wage