I have employed a part-time employee who started work on 14th July 2015. All my employees are monthly paid according to the employment contract, paid monthly in arrears, in 12 equal payments per year.
This new employee is contracted to work 5.5 hours on Tuesday, Wednesday, and Thursdays, and 8.5 hours on Friday. 25 hours per week in total. Her annual salary is £18000.
I worked out her pay for July 2015 (first month) as 18000/12=1500/31x18=£870.96. A simple pro-rata calculation for the month. She is disagreeing with my calculation.She is asking for £1038.75 based on the actual hours worked in the month of July. She is basing this on 75 hours worked in July times the hourly rate of £13.85 (18000/52/25).
I am not concerned about paying her £167.50 more for the first month. However, on a matter of principle I am objecting to it. I feel that my calculation is right and the monthly pay of £1500 is average per month irrespective of how many working days or hours there might be in a particular month. I would hate to think that as an experienced employer going back a number of decades I cannot calculate a simple pay, pro-rata.
Can some one, please, let me know whether I am right or wrong and why?