Salary
- Thread starter 7485
- Start date
Chris123
Member
- Location
- Shropshire
Could you put them on salary for a few weeks then back to hourly rate when the house is bought doubt the bank will ever take an interest again once the initial paperwork is done
kiwi pom
Member
- Location
- canterbury NZ
What difference does being on a salary make? Unless he's on a Zero hours contract maybe?
glasshouse
Member
- Location
- lothians
The boneheads at the bank cant get their heads around overtime.
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Uk banks often don't consider overtime as regular income when lending for mortgage etc and as a big part of uk farm workers income is often overtime this can be very restrictive in their ability to borrow to buy a house
The bank or mortgage company Will very much take an interest! Pre credit crunch they weren't so interested (!) but they now check exactly how long someone has been employed and they require lots of proof. It used to be 3 months minimum but it is now generally 6 months plus. You would also get into Huge trouble (and could be done for fraud) if you put them onto a salary, and then back onto an hourly rate, just to enable a mortgage.
Why was this?
- Location
- North West England
Find a good independent mortgage advisor! Do you or anyone you know have one you could recommend? Ask around, a good experienced independent mortgage advisor will usually know what the computer says no drones at the bank don't.
ollie989898
Member
kiwi pom
Member
- Location
- canterbury NZ
So do his hours vary a lot each month and does he have a basic week now?
Some farmers get caught out on salary here because hours still have to be recorded and in a really busy time the hours worked in a pay period would be so high the employee wasn't making minimum wage for that time.
Always been very wary of salaries myself.
Your thinking is wrong. Divide the total salary by the hours/year and the rate will be averaging out fine.
ollie989898
Member
A salary will not suit all individuals, perhaps for similar reasons some folk want to be paid weekly whilst others are fine with monthly. In time I suspect once someone has become accustomed to it, particularly in the slack months of winter perhaps, and have the feeling of security from regular income, it helps them a lot financially.
That said, if you offer a salary to people, in my mind, it shows you are committed to them, and that you value them as an integral part of the business. So long as they understand that, that is fine.
Managing people is one of the things the industry largely has to learn itself. You won't learn it in college that is for sure.
My father prior to what I am supposed to describe as a 'retirement' had over 100 people on our payroll. We had the lowest staff turnover rate by miles in what was a relatively large company employing several thousand in multiple locations in the country.
If you want employees to give you 100% you will have to give 110% to them. In many cases, in agriculture, the business is effectively asking the employee to dedicate their entire working lives to it. I guess what I am trying to explain is that there is a human or even social side to employing people, in addition to the financial one.
That said, if you offer a salary to people, in my mind, it shows you are committed to them, and that you value them as an integral part of the business. So long as they understand that, that is fine.
Managing people is one of the things the industry largely has to learn itself. You won't learn it in college that is for sure.
My father prior to what I am supposed to describe as a 'retirement' had over 100 people on our payroll. We had the lowest staff turnover rate by miles in what was a relatively large company employing several thousand in multiple locations in the country.
If you want employees to give you 100% you will have to give 110% to them. In many cases, in agriculture, the business is effectively asking the employee to dedicate their entire working lives to it. I guess what I am trying to explain is that there is a human or even social side to employing people, in addition to the financial one.
- Location
- South West
Putting him on a salary and I bet his motivation of more hours = more money disappears as fast as him at 5pm every day!!!!!
kiwi pom
Member
- Location
- canterbury NZ
Yep that sounds right and seems to be the thinking here but I know some dairy farmers were getting in trouble because over calving staff were working so many hours they were falling under minimum wage so had to receive a top up payment even though they didn't do many hours at other times.
Different in the UK I guess.
not in new zealand.hours in pay period,eg. weekly.
there was even talk of contractors not being allowed to work for less than minimum wage.
kiwi pom
Member
- Location
- canterbury NZ
Works the other way too "he can work all weekend because I don't have to pay him any more"
The Tuesday in December you went home at lunchtime is always remembered, the weeks of late finishes easily forgotten.
Bit cynical I know and it probably works on an arable farm with just combinable crops but somewhere you're busy most of the year i'm not sure I like it.