Can employer pay a higher rate to a new employee for the same job?

[Annieindublin]

If they had to advertise at a higher rate I assume that’s because they can’t get anyone to apply at the current rate,

Current staff can start negotiations based on the market value. Maybe the union can help?

 

[bipped]

If 60k is the market rate for the same toolmaker job, why would that company be underpaying the other ten toolmakers by 10k? Various reasons I know, eg maybe its a small business and they can't pay more, maybe the 10 toolmakers took a paycut in difficult times and never caught up since, maybe its a start-up, or maybe the business has poor hr policies where they think employees are just units of production...

OTOH, if the market rate is 50k, can't the company offer a sign-on premium of 10k to attract a new employee? No additional annual cost and no upset to current employees.

 

[thedaddyman]

Real problem here is that the OP's employer (from this and other posts) doesn't seem to give a sod about the law of the land. First step should be to get a contract of employment in place.

I'd be recommending a discussion with an employment lawyer at this stage.

No shortage of these vacancies available right now from what I can see in my local paper and Dublin Bus and the likes are crying out for qualified drivers

 

[Leo]

If 60k is the market rate for the same toolmaker job, why would that company be underpaying the other ten toolmakers by 10k?

Managers' or directors' first duty is to act in the best interests of the company, part of that is keeping payroll costs low. Offering someone happy to work for 50k an extra 10k just because they need to advertise a similar role at a higher rate is poor management.

 

[Annieindublin]

Agreed. Just because the market is tight you don’t go around offering unrequested payrises. You watch the market and pray the current staff won’t all leave at once.

Most people don’t move that frequently once they’ve got a job that suits them.

My company has me, I am not going to be arsed to leave now. However a junior colleague discovered that a new hire was on more than her, she jumped up and down and got a good pay rise. Frankly they knew she’d walk and they’d have to pay more to replace her.

 

[bipped]

Why I used the example of a sign-on bonus as its a once off payment. Having contented and motivated employees who show up and do a good job is also part of acting in the best interests of the company. The recent pilots dispute in Aer Lingus is a good example.

 

[T McGibney]

Real problem here is that the OP's employer (from this and other posts) doesn't seem to give a sod about the law of the land. First step should be to get a contract of employment in place.

I'd be recommending a discussion with an employment lawyer at this stage.

No shortage of these vacancies available right now from what I can see in my local paper and Dublin Bus and the likes are crying out for qualified drivers

Do that in a sector like local bus driving and the OP might well squeeze a few grand in compensation out of their employer but find it hard to get decent work afterwards.

 

[deco87]

Why don't they?

It's not the first time the OP has been on here complaining about this particular job, and it seems to be a sellers market for bus drivers at the moment.

I do give relevant information when I have a query , as I think giving a bit of background would be important to get an answer to the matter in hand. Holidays was an issue and still is !!! I know the relevant legislation , some employers are very hard to talk to! Not very receptive ..I'm happy with the job ,it suits , and was just a bit taken aback when I saw same job with different pay. Don't mean to be complaining, just seeking advice , which is generally spot on.
Thank you

 

[Salvadore]

I'm at a loss to conceive how a job ad can refer to existing, separate roles in the employer organisation. If you have 10 toolmakers each earning €50K each and you need to offer €60k to attract an 11th toolmaker, I don't see that as sufficient reason to grant all 10 incumbents a €10k pay rise.

I can see the merits.

The logical consequence is that some or all of the ten will threaten to leave. Replacing them will come at a cost on top of the additional salary required. Even if they stay, you have a cohort of hacked off staff whose loyalty to a company has been lost.

Assuming they’re doing a good job and you’d like them to stay, why not pay them the market rate?

 

[Salvadore]

My company has me, I am not going to be arsed to leave now. However a junior colleague discovered that a new hire was on more than her, she jumped up and down and got a good pay rise. Frankly they knew she’d walk and they’d have to pay more to replace her.

That’s really the issue. Your ability and willingness to jump ship and whether your employer cares either way.

 

[T McGibney]

I can see the merits.

The logical consequence is that some or all of the ten will threaten to leave. Replacing them will come at a cost on top of the additional salary required. Even if they stay, you have a cohort of hacked off staff whose loyalty to a company has been lost.

Assuming they’re doing a good job and you’d like them to stay, why not pay them the market rate?

If you apply this logic to the bus industry, which has seen ruinous inflation in the costs of fuel, parts and bus purchase costs in the past 2/3 years, you'll soon conclude that further inflation on foot of a wage spike is probably unsustainable.

 

[misemoi]

It is a well known practice that new hires can negotiate salaries at a higher rate than existing ones. So if you are in a company for some time, it is likely that those hired more recently earn more than you, even if doing the same job. The general advice is to move employers if you want to increase your earnings. Not always possible depending on skillset/industry but in my own career I have secured large salary increases by moving roles without making large leaps in the career ladder. I think the only places you will see parity are in salary scales in the public/civil service.

 

[Ualtar]

I work for a transport company.
I get paid a month salary . No contract.
It runs along the school calendar.

I see my employer advertising same job as I have , but it's advertised at 140 euro a month more than I am paid.

Is there any legislation, that says employers are obliged to pay same rates for sane employment.?


If I was a female, I'm sure the discrimination card would come into play thks

1. No Contract:​

• Employment Terms: Even without a formal written contract, your rights are still protected under Irish employment law. The absence of a contract doesn’t negate your entitlement to fair treatment or the right to challenge discrepancies in pay.

2. Equal Pay Legislation:​

• Employment Equality Acts 1998-2021: Under these acts, all employees are entitled to equal pay for like work, regardless of gender, age, race, disability, or other protected grounds. However, these laws specifically protect against discrimination based on these grounds.
• Gender Pay Gap Information Act 2021: Specifically addresses gender-based pay disparities, but does not apply to non-gender-based pay differences.

3. Pay Discrepancies:​

• Non-discrimination Grounds: If there is a reason for the difference (experience, tenure, etc.), your employer might justify the higher advertised salary. But if this discrepancy is arbitrary and there is no justifiable basis, you may have grounds to negotiate.

4. Negotiation and Workplace Equality:​

• Action Steps: Since you have discovered that a job similar to yours is being advertised at a higher rate, you could raise this issue with your employer, asking for a review of your pay. While there might not be direct legislation that mandates equal pay for similar work outside discrimination contexts, fairness and internal consistency are often important for companies to maintain morale and compliance.

If Gender Were Involved:​

• If Discrimination were at Play: If you were female, or another characteristic within the protected grounds under the Employment Equality Acts, you would have more legal leverage to claim discrimination. Without that, the argument centers more on fairness and equal treatment rather than a legal mandate.

Recommendations:​

1. Internal Dialogue: I recommend first having a conversation with your employer to understand why there is a discrepancy in pay and to explore the possibility of aligning your salary with what is being advertised.
2. Legal Consultation: If you believe there is unfair treatment beyond simple pay rates, consult with a legal advisor to explore other potential actions, especially if other factors like tenure or work conditions are in play.