ABSTRACT
The main purpose of a business paying wages and salaries is to obtain the labour required for it to operate. Obviously wage payment is a highly charged subject and in the hotel and catering industry it is a very contentious one owing to a variety of complications. Managers may decide by looking at what competitors are paying, what the wages council rate is, what has been historically the employer's practice and, in many cases, what is necessary to overcome the current crisis. Starting wages or salaries offered to newcomers may not normally be more than 20 per cent above the minimum and this should only be permitted where appropriate experience in the type of job justifies it. Communicating details of any increases should be done as soon as possible after the decisions have been taken, but, they should not be part of any performance review or appraisal.
