Piece rates – ‘Output Work’

Employers must carry out a fair test to find out how many tasks or pieces an average worker completes in an hour (the average rate of work).

  1. Test some or all of the workers. The group you test must be typical of the whole workforce – not just the most efficient or fastest ones.
  2. Work out how many pieces of work have been completed in a normal working hour.
  3. Divide this by the number of workers to work out the average rate.
  4. If the work changes significantly, do another test to work out the new average rate. It’s not necessary to do another test if the same work is being done in a different environment, for example work previously done in a factory being done at home.

Work out the fair rate

  1. Divide the average rate of work by 1.2 (this means new workers will not be disadvantaged if they’re not as fast as the others yet).
  2. Divide the hourly minimum wage rate by that number to work out the fair rate for each piece of work completed.

For further legal guidance you can contact ACAS – https://www.acas.org.uk/

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