This Q&A looks at alcohol, the national minimum wage, and statutory sick pay.
Q: The work performance of one of my employees is suffering because of the effects of drinking. What should I do?
Cases involving alcohol should be dealt with carefully. If an employee is simply letting their social life disrupt their work, then a warning that disciplinary action might follow would be appropriate. However, if you suspect an employee has a drinking problem, proceed with care and discretion. Your priority should be to offer support and help resolve the problem, perhaps by encouraging counselling or a GP visit.
Q: Can overtime payments be included in minimum wage calculations?
No. Periods of overtime are only included in minimum wage calculations at the standard hourly rate. For example, if an employee works 40 hours at £5.00 per hour, and another ten hours of overtime at £10.00 per hour, the overtime payments don’t lift the average upwards. As far as the minimum wage is concerned, the employee worked 50 hours at the standard £5.00 per hour. Note that the national minimum wage is increasing from £5.05 per hour to £5.35 per hour in October 2006.
Q: Do I have to pay an employee’s salary if they’re off work sick?
You’re not required to, but many employers do, so it might affect your ability to recruit and retain staff if you make less generous provisions. Legally, from an employee’s fourth day off work sick you’re only required to pay them statutory sick pay (SSP). The current weekly rate of SSP is £70.05. However most employers include much more generous sickness provisions in their employment contracts, commonly continuing to pay full salary.
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