Legal Definition of Wage

Legal Definition

‘wage’ means the amount of money paid or payable to an employee in respect of ordinary hours of work or, if they are shorter, the hours an employee ordinarily works in a day or week.

What does this mean practically?

 

Practically, this means that wages refer to the standard pay employees earn for their usual working hours. It does not include overtime or additional compensation beyond regular hours but is based on the regular hours they work each day or week.

Top tip from Labour Expert on the definition

 

Ensure that wage calculations are based on the actual hours worked or the standard working hours outlined in employment contracts. Accurate wage determination helps in complying with Labour laws and maintaining fair pay practices.

Insights

 

The definition of ‘wage’ clarifies that it pertains to the regular pay an employee receives for their standard work hours. Understanding this ensures proper calculation and payment of wages, reflecting adherence to employment agreements and legal standards.

Understanding what constitutes remuneration helps in ensuring compliance with employment laws and fair treatment in the workplace

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