Back pay for a pay raise - when does it start?

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jonathan18

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#2328646 2-Oct-2019 19:50

quickymart:

Linux: What would make you think pay rises could only start on a certain date of the year? That is just really bizarre!

If my boss said from next week we will pay you an extra $1 per hour then it starts next week and would reflect in the following weeks pay packet

[snip]

As an aside, have I done something to offend you John? Just seems my last couple of posts you've just picked at them without really adding anything useful. Are you having a bad day?

I'll risk wrath by backing you on this point - on an average day Linux's posts can be somewhat acerbic but this one was particularly unfortunate, as not only was it unnecessarily rude but it showed a lack of understanding of the wide variety of rem arrangements in place across NZ businesses and organisations.

larknz

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#2328648 2-Oct-2019 19:59

It all depends on what the contract says. If the contract says that pay will be reviewed on a certain date and negotiations go past that date then pay rises should be back paid to that date.

blackjack17

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#2328652 2-Oct-2019 20:21

larknz: It all depends on what the contract says. If the contract says that pay will be reviewed on a certain date and negotiations go past that date then pay rises should be back paid to that date.

This is very common in the state sector Teachers, Doctors, Nurses ... When the three year contract runs out without a new contract in place, pay remains on the old contract until the new contract is negotiated and then staff are back paid until the end of the old contract.

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MileHighKiwi

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#2328656 2-Oct-2019 20:45

I wish I got back pay. Our financial year is Oct-Sep, performance reviews are done in Oct/Nov and any rem changes take effect from 1 Jan. Your wife's employment agreement would give you the answer.

JimmyH

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#2328779 3-Oct-2019 09:14

quickymart:

Is this the law however, or can an employer say we're going to raise your pay and just start the new rate at any old time? I couldn't find much on the Government websites about it.

It's only in the law if its a statutory pay rise, such as an increase in the minimum wage.

There is nothing in the law about when other pay rises have to take effect. There may, or may not, be something in her employment contract that says when pay rises based on annual reviews etc take effect - in which case they would be backdated to that date. This is pretty common with a wide range of larger private sector employers and the public service.

If it's an ad hoc pay rise they are offering rather than a contractually required one (e.g., "you have done well, we don't want to lose you, we are increasing your pay") then they can make this effective from whenever they like.

quickymart

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#2329115 3-Oct-2019 16:36

Cheers, that's very helpful :)

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