In general employers are free to decide what their workforce is paid, but there are some legal constraints. For example, most workers must be paid at least the national minimum wage. Employers therefore need to know who qualifies for the minimum wage and how it is calculated.
Although employers have a large degree of freedom in how they set pay rates, the law prohibits employers from allowing a worker’s pay to be affected by his or her sex, race, religion, sexual orientation or disability. It is also unlawful to pay a worker less because he or she works part-time or on a fixed term basis, unless this can be objectively justified.