We have X2 (unamended) in our contract, if we apply for a compensation event for the increase in minimum wage are we only able to recover the increase the impact on people who have been on minimum wage and are now increasing or are we able to recover the impact of the change in law on all the wages? Increasing those on minimum wage means that we have to increase those above them so that the pay gap per skill/grade is fair for our employees.
I would suggest that you can claim only for the impact on the cost of people with minimum wage as you say; the issue of the pay gap per skill/grade is rather an internal one and can be subject to company policy. Please note that we are referring to the impact to the Defined Cost (SCC or SSCC depending which Option applies) for the specific CE (change in the law); if rates have not been agreed in CD Part 2 or for a subsequent CE, the Defined Cost would be based on the cost of People in the SCC or SSCC (as the case may be) based on your actual (possibly increased due to the pay gap policy) wages.
1 Like