Staff salary vs hourly

[Devon lad]

Just wondered what peoples opinions are on the subject. I’ve got a pretty good young lad who works for me who has always been on hourly but a good consultant has advised I put him on salary. I’m struggling to see any benefits to either of us other than even wage profile every month as we are spring block calving and hours drastically reduce over the dry period.
Opinions please.
TIA

 

[goodevans]

I have no opinion but if he is on an hourly rate does that make him self employed, if so you are on dodgy ground if he only works for you

 

[Beef farmer]

It's easier on admin, no clock watching.
Requires a decent boss who's not an ass****
What does the lad want to do?

 

[Turnip]

Might be helpful for him when talking to mortgage lenders etc due to the even wage profile. As @goodevans says its dodgy terrain he isn't an employee but only works for you.

 

[Chimera]

We have debated this often, and I have often heard the old "I only got £4/hr last month" whilst firgetting the other end of the year!

 

[Will Blackburn]

I have no opinion but if he is on an hourly rate does that make him self employed, if so you are on dodgy ground if he only works for you

Hourly is fine with paye, keeps everything honest.

 

[Pigken]

I have no opinion but if he is on an hourly rate does that make him self employed, if so you are on dodgy ground if he only works for you

Might be helpful for him when talking to mortgage lenders etc due to the even wage profile. As @goodevans says its dodgy terrain he isn't an employee but only works for you.

Where does the op say the lad is self employed? Surely he is on the books as in paye etc, and consultants idea is, be better on anulised salary than hourly wage.

 

[Devon lad]

He is employed

 

[dannewhouse]

I can't see how it works in farming, in other industries salary is for a set amount of work equivalent to say 35 hours per week overtime is still available.

Your wanting to average his hours from say minimum of 25 per week to max of 100 and pay him the average every week.

Best bet maybe pay him set hours every week, the quiet weeks use a days holiday to build hours up? Atleast then on the busy ones he feels the benefit?

 

[O'Reilly]

Ask the lad, give him the option, do whatever he wants. That's how you keep staff happy.

 

[Devon lad]

Ask the lad, give him the option, do whatever he wants. That's how you keep staff happy.

That’s why I’m reluctant to change it’s never been an issue in the past

 

[Kiss]

I’d say you could do a lot of damage putting him on salary now just as you are about to enter your busy time.

minimum wage goes up every year salaries never seem to is the only advantage.

 

[Two Tone]

I quite like the idea of salaries rather than wages, but it has to work both ways and must be fair to both employer and employee.
Yes there will be busy times, but there will often be slack times too.
If there isn’t much to do, the employee should be allowed to go home early.

Finding and funding jobs to keep an employee busy to work a standard week, often costs the employer excessive money.
It also helps that the employee knows exactly how much he is getting paid each week/month.

As long as regular checks and records are kept of exactly how many hours an employee is working each year, so that it correlates with being same either way, why not?

 

[Sid]

Salary could mean you owe him money or he owes you money if he ever ceased working for you.

That's when it could get messy

 

[Beef farmer]

Salary could mean you owe him money or he owes you money if he ever ceased working for you.

That's when it could get messy

How?

 

[Sid]

How?

Over paid for 2 months when cows dry, then up and walks how do you get that money back?

 

[Rossymons]

Over paid for 2 months when cows dry, then up and walks how do you get that money back?

They were probably underpaid during calving when hours are longer? It all balances out

 

[Lowland1]

Very simple work out what you paid him last year then divide by twelve. Maybe add a bit on top. But first ask him what he thinks.

 

[Beef farmer]

Over paid for 2 months when cows dry, then up and walks how do you get that money back?

How petty

 

[kiwi pom]

UK law is probably different but some dairy farms get in trouble here because during a busy time an employee on salary must still make at least minimum wage in that pay period for each hour worked.
Worth checking.
As I understand it you must still record hours worked too, although that may be different in the UK as well.
I'm not a fan of salaries, too much potential for an argument.
Clock in, clock out, get paid.