99237273
James Tilley
Unit 14 – Aspects of Employment Law
P6 – Describe the diferent policies of remuneraton adopted in a
selected business organisaton
In this report, I will explain the diferent policies of remuneraton in Tesco for both Shop Assistant
and Manager roles.
Remuneraton is the total compensaton received by a worker. This includes not only basic salary but
also bonuses, expense accounts, company advantages, such as expense accounts and petrol cards,
as well as other forms of compensaton. This will vary from company to company and positon to
positon. This is because these diferent factors will be diferent for each company, and can be the
diference between an employee deciding to work for a selected company.
When a company is deciding how to pay their workers, they will need to identfy the way in which
they will provide this pay, either salary or wage.
A salary is a fxed amount of money which is given to the worker for their input. This is usually stated
yearly, however, this may also be writen uarterly or even monthly. These tend to be given for
higher paid jobs, as well as jobs which are full or part tme over lower paid and zero hour jobs.
The second method of pay is a wage. This is an amount of money which is paid hourly, as compared
to for a fxed period of tme. These will be paid to workers depending on the amount of efort they
exert upon the task and for the company. These tend to be more prominent in zero hour work,
rather than full tme or part tme work. Due to the nature of it, overtme will also classify as
remuneraton through wages, even if the worker gains a salary. This is because this work will be
completed on top of their salary.
A salary is diferent from a wage as it is given to the worker before tax and other deductons,
whereas a wage has the deductons already removed. In additon, salaries are paid monthly with a
transfer for a set amount into the account of the worker, and although rare, this transfer of money
can stll be done through cash or che ue, whereas wages are more likely paid in cash or che ue. This
is because without the worker working, the company will not know how much money to send them.
Although this is the case, some companies, such as McDonalds and Tesco send wages by bank
transfer the week afer the hours of the workers have been counted.
When paying a worker wages, there are a number of diferent methods which can be employed to
make sure the workers are paid the correct amount of money. The most popular method is known
as tme rate. This method involves paying the worker a wage on the basis of the tme they work,
regardless of their producton. When paying a worker wages, this is the method which is used by
Tesco. This is because this method allows a set rate to be paid for each worker per day, rather for
their output, which will naturally fuctuate each tme they complete their work. Furthermore, this
helps the workers as they can easily understand the amount of work they will receive.
This also reduces the potental issues, such as the lack of productvity caused by a manager who
cannot allocate work, leading to some workers gaining less of a wage than others. This also pushes
managers into allocatng more work due to them wantng the workers to complete the amount of
work they are paid for, therefore, increasing the overall productvity through an increased amount of
work given by the management. However, due to the pay being for a complete day rather than
productvity, this may lead to some workers completng less work due to them gaining the same
amount of pay as a worker who completes much more work than them, which can in turn dissuade
workers from working as hard as they can.
1
James Tilley
Unit 14 – Aspects of Employment Law
P6 – Describe the diferent policies of remuneraton adopted in a
selected business organisaton
In this report, I will explain the diferent policies of remuneraton in Tesco for both Shop Assistant
and Manager roles.
Remuneraton is the total compensaton received by a worker. This includes not only basic salary but
also bonuses, expense accounts, company advantages, such as expense accounts and petrol cards,
as well as other forms of compensaton. This will vary from company to company and positon to
positon. This is because these diferent factors will be diferent for each company, and can be the
diference between an employee deciding to work for a selected company.
When a company is deciding how to pay their workers, they will need to identfy the way in which
they will provide this pay, either salary or wage.
A salary is a fxed amount of money which is given to the worker for their input. This is usually stated
yearly, however, this may also be writen uarterly or even monthly. These tend to be given for
higher paid jobs, as well as jobs which are full or part tme over lower paid and zero hour jobs.
The second method of pay is a wage. This is an amount of money which is paid hourly, as compared
to for a fxed period of tme. These will be paid to workers depending on the amount of efort they
exert upon the task and for the company. These tend to be more prominent in zero hour work,
rather than full tme or part tme work. Due to the nature of it, overtme will also classify as
remuneraton through wages, even if the worker gains a salary. This is because this work will be
completed on top of their salary.
A salary is diferent from a wage as it is given to the worker before tax and other deductons,
whereas a wage has the deductons already removed. In additon, salaries are paid monthly with a
transfer for a set amount into the account of the worker, and although rare, this transfer of money
can stll be done through cash or che ue, whereas wages are more likely paid in cash or che ue. This
is because without the worker working, the company will not know how much money to send them.
Although this is the case, some companies, such as McDonalds and Tesco send wages by bank
transfer the week afer the hours of the workers have been counted.
When paying a worker wages, there are a number of diferent methods which can be employed to
make sure the workers are paid the correct amount of money. The most popular method is known
as tme rate. This method involves paying the worker a wage on the basis of the tme they work,
regardless of their producton. When paying a worker wages, this is the method which is used by
Tesco. This is because this method allows a set rate to be paid for each worker per day, rather for
their output, which will naturally fuctuate each tme they complete their work. Furthermore, this
helps the workers as they can easily understand the amount of work they will receive.
This also reduces the potental issues, such as the lack of productvity caused by a manager who
cannot allocate work, leading to some workers gaining less of a wage than others. This also pushes
managers into allocatng more work due to them wantng the workers to complete the amount of
work they are paid for, therefore, increasing the overall productvity through an increased amount of
work given by the management. However, due to the pay being for a complete day rather than
productvity, this may lead to some workers completng less work due to them gaining the same
amount of pay as a worker who completes much more work than them, which can in turn dissuade
workers from working as hard as they can.
1
