Please note that we are unable to offer free legal advice.  Our consultation team are here to take your case details and explain any costs involved.

hello@kilgannonlaw.co.uk

Our team is ready to answer any questions

0800 915 7777

Book your consultation today

What is a remuneration package?

It is increasingly common for workers to change their job every few years. Research shows that young employees entering the job market tend to change jobs an average of 5.7 times. One of the main reasons cited for leaving a job is an employee’s pay and remuneration.

From an employer’s perspective, offering a remuneration package is not just about attracting new talent; it should be an essential part of a holistic approach to staff retention. Employees will be likely to assess the package that is on offer from an employer, to ensure that it is fair and reasonable.


A collection of incentives

A remuneration package is the complete bundle of pay, benefits and perks given (or offered) to an employee. It can typically include a range of options and incentives, in addition to the employee’s salary:

  • Bonuses, commission, and performance-related pay
  • Expense reimbursements and fuel allowances
  • Accommodation and utilities allowances
  • A mobile phone
  • Childcare and healthcare
  • Company shares or other cash incentives
  • An enhanced pension provision
  • An enhanced annual leave entitlement

Popular remuneration incentives

Remuneration packages vary between organisations, and for different positions. Different benefits and incentives may be offered, in addition to salary, that suit the level and nature of the role, and make the position attractive and competitive in relation to the job market.

Salary ranges

The salary element should be fair and competitive. When assessing this, you should consider working hours, market pay rates, and whether pay will be fixed or variable, according to performance.


Company benefits

These may also include a variety of options, e.g.

  • health, dental and vision insurance,
  • wellness programmes (e.g. gym membership),
  • pet insurance,
  • savings plans,
  • disability and life insurance.

Wellbeing benefits have risen in popularity over recent years. These may include subscriptions to mental health platforms, or time out of the office for wellbeing activities such as counselling or walk-and-talk meetings.

Government-backed schemes

Employers may choose to opt in to government-run promotions, which can be included in a remuneration package.

For example, the cycle to work scheme is a government tax exemption programme that was introduced to promote better health and reduce pollution. It means employers can loan cycles and safety equipment to employees as a tax-free benefit.

Flexible working

More than ever before, particularly in a post-pandemic world, employees are trying to achieve a better work-life balance. Reduced travelling times (or the option to travel off-peak) and the ability to meet family commitments are some of the factors. Remuneration that reflects these needs will be more attractive than packages that don’t.

Other remuneration benefits

Making a benefit match the circumstances of a position is key. Relocation and housing assistance may be an obvious perk to offer an employee who may have to move to another geographic region for work. An executive coaching programme may appeal to those who aspire to a senior leadership role.

Career progression is an important consideration, as a lack of prospects is a common reason for employees to change jobs. Addressing this within a remuneration package could provide a compelling reason for an employee to stay.


Remuneration and the law

Benefits and perks don’t have to be substantial to be meaningful. However, any payments must be fair, correct and timely. They also need to be documented and taxed accurately.

Other than in certain limited circumstances, discriminatory practices should not and cannot contribute to any variances between employees.

It’s quite common for a remuneration package and pay to be reviewed and increased on an annual basis. However, employees may not be legally entitled to an annual increase. Whether they are will depend on the terms of their employment contract. Any previous increases, and the frequency of those raises, may also play a part.

 

If you have any questions about the terms of your employment contract, your entitlement to a remuneration review, or need advice on the contractual implications of putting together a remuneration package for employees, our team of experienced employment solicitors can help. Get in touch today.


A black and white photo of the big ben clock tower
By Louise Maynard October 28, 2024
The Labour Party came into power in 2024 with a promise of substantial reforms aimed at enhancing worker’s rights, improving work-life balance, and addressing inequalities in the workplace.
A woman is sitting in a chair talking to a man.
By Yeing-Lang Chong October 10, 2024
Mental health is an increasingly important issue in the workplace, affecting employees’ wellbeing, productivity, and overall satisfaction. As more employees speak up about their struggles, UK employers must ensure they are providing a supportive environment while adhering to legal responsibilities. The legal framework surrounding mental health in the workplace is clear, but understanding how to apply it practically is key to preventing discrimination and promoting a healthy work culture. With World Mental Health Day on 10th October, now is the perfect time for employers to review their obligations and strategies for supporting mental health in the workplace.
An empty office with a desk and chair in front of a window.
By Yeing-Lang Chong October 9, 2024
Handling Mental Health-Related Absences: Best Practices and Legal Obligations Mental health-related absences are a common challenge for employers, as mental health conditions can lead to prolonged or frequent time off work. Understanding how to handle these absences with compassion while fulfilling legal obligations is crucial for maintaining a supportive work environment and avoiding potential legal pitfalls. As we approach World Mental Health Day on 10th October, this article outlines best practices and key legal responsibilities for UK employers when managing mental health-related absences.
A woman is comforting a man who is sitting at a desk with his head in his hands.
By Emily Kidd October 8, 2024
In the UK, mental health discrimination in the workplace is a growing concern as more employees speak up about their struggles with mental health issues. World Mental Health Day, observed on 10th October, provides an opportunity to reflect on the legal protections in place to safeguard employees from discrimination and to promote mental wellbeing in the workplace. This article will explore the legal framework surrounding mental health discrimination, including how the law defines mental health disabilities, employers' responsibilities, and steps businesses can take to prevent discrimination.
A man is sitting in a chair while two women comfort him.
By Marianne Wright October 7, 2024
Supporting employees with mental health conditions is not just an ethical responsibility for UK employers; it’s a legal obligation under the Equality Act 2010. As we approach World Mental Health Day on 10th October, it’s crucial for employers to understand what reasonable adjustments are, how they can be applied to mental health, and the steps they should take to comply with UK law while fostering an inclusive and supportive work environment.
A group of people are sitting around a table with their hands on each other.
By Marianne Wright October 7, 2024
The Equality Act 2010 is a key piece of legislation in the UK that aims to protect employees from discrimination in the workplace. While much of the focus on this Act has been on physical disabilities, mental health conditions are also covered under its provisions. As we approach World Mental Health Day on 10th October, it’s important to understand how the Equality Act protects employees with mental health conditions, and what employers must do to ensure they meet their legal obligations.
A group of people are clapping their hands in an office.
By Marianne Wright October 7, 2024
In the modern workplace, stress is often considered an inevitable part of the job. However, when stress becomes overwhelming, it can lead to significant mental health issues such as anxiety, depression, and burnout. In the UK, employers have a legal responsibility to manage workplace stress and support employee wellbeing. As we approach World Mental Health Day on 10th October, this article explores the legal framework around workplace stress and provides guidance on how employers can take steps to create a healthier, more supportive work environment.
A man in a wheelchair is sitting at a table with other people.
By Springhouse Solicitors October 2, 2024
The British Airways Plc v Rollett & Others ruling underscores the importance of focusing on the actual disadvantages caused by workplace policies. Employers are now obliged to be more vigilant in assessing the broader impacts of their decisions, ensuring equity and fairness for all employees, regardless of whether they possess a protected characteristic under the Equality Act 2010. By proactively addressing these considerations, employers can foster a more inclusive work environment and mitigate the risk of indirect discrimination claims.
A woman is sleeping at a desk in front of a laptop computer.
By Marianne Wright August 11, 2024
Shift work is a necessity in the healthcare sector, ensuring round-the-clock care. However, long hours, night shifts, and irregular schedules can take a significant toll on healthcare workers' physical and mental health, increasing the risk of burnout. This article outlines your legal rights regarding rest breaks, the impact of shift work, and your employer's obligations to minimise the risks.
By Yeing-Lang Chong August 11, 2024
Mental health conditions are becoming increasingly prevalent in UK workplaces, with far-reaching consequences for employees, businesses, and society as a whole. Employers have a duty of care towards their employees' mental wellbeing, and certain mental health conditions may also be recognised as disabilities under the Equality Act 2010.
More Posts
Share by: