Download the HR Guide
Head Office 01224 701383
Recruitment 01224 701704

20.04.17

Asda employees to receive a pay rise if they move to flexible contracts


Employees at Asda have been offered a pay rise to in return for giving up their paid breaks and bank holidays. Under the new contracts they will be paid at £8.50 per hour and employees will be able to work in different departments on different days that suit their personal circumstances.

In addition to these changes, shifts deemed to be unsocial have been cut by three hours but the extra pay for these hours will be increased. These changes have been approved by the GMB union who are satisfied with Asda’s claim that this will help 95% of their staff. General Secretary Tim Roache has stated that;

“These new flexible contracts will help to ensure job security, ensure those accepting them are on the same terms and - best of all - ensure that people will earn more money as a result”

There are some, however, that believe this as a way of mitigating the costs of the National Living Wage increase, with employers giving with one hand and taking away with the other. Examples of this include when companies like Tesco and Morrison reduced overtime rates, meal deals and enhanced weekend and evening working. When justifying  these changes Asda pointed to the increased hourly rate and the subsequent rise in employer’s national insurance and pension contributions.

The Living Wage Foundation has welcomed Asda’s changes but has said that they need to do more to move towards the ‘real’ living wage of £8.45 UK wide and £9.75 in London.

The National Living Wage was increased to by 30p to £7.50 on the 1st April 2017.

For advice on the National Minimum Wage, please call Empire on 01224 701383.    

Stay up to date…

Fill out the form to subscribe to our newsletter. Keep up to date with news and insights from our team.

Social Media

Follow Empire HR on your favourite social network.

Empire Aberdeen

Empire House
117 Grandholm Drive
Aberdeen
AB22 8AE

01224 701383

Empire Glasgow

Centrum Offices
38 Queen Street
Glasgow
G1 3DX

0141 432 1903

Empire Inverness

Corrie Lodge
Millburn Road
Inverness
IV2 3TP

01463 801903

Empire Dundee

Unit 27, City Quay
Camperdown Street
Dundee
DD1 3JA

01224 701383