Management Report on Minimum Wage and Living Wage

This management report discusses the concept of minimum wage and living wage, its application in the case of TESCO, and the cost and benefits for the company. It also provides recommendations for TESCO to ensure compliance with minimum wage laws.

Prepare a
Management raport on
the minimum wage
and living wage

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Management report on the Minimum wages and living wages..................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Minimum wages are an amount which is set by the government and every organization
and legal entity have to pay minimum wages to their employees according to the amount set by
the government. Living wages mainly determine to the minimum cost to live. The amount
needed to give a living wages depend on what is included in the calculation. This living wages
amount is set by the government low markers for the minimum wages must take into the account
the needs of the business as well as employees of the company.
This report will briefly discuss the Minimum wages and living wages and it will apply
the reverent topic on the TESCO company and this report will mainly aim at the legal regulation
on the UK government and cost and benefits from this legal issue to the TESCO company. In the
end this report will provide overcome strategies from this issue.
MAIN BODY
Management report on the Minimum wages and living wages
Minimum wages and living wages
It is legal rights of the employees to get minimum wages from the organization they are
working. Government of the UK have decided minimum wages for the employees, so they can
earn for their living and spends some money for their basic needs like food, clothes, education of
the children and their own expenses. This all is basic needs of the labor who are working hard
to earn money for their living ((Bell and Machin., 2018). This is important for organization
as well to take this low seriously and provide employees minimum wages for their living, For the
every organization employees play important role to earn objective and goals of their business.
Every successful organization have strong labor force and worker in their workplace who are
responsible for their success, so it is important for the organization to look for their employees,
so they can earn enough to fulfill their basic needs. Which is important for the living.
The purpose of minimum wages is to protect workers against unduly low pay. They help
ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all
who are employed and in need of such protection (Brown., 2017) Minimum wages can also
be one element of a policy to overcome poverty and reduce inequality, including those between
men and women, by promoting the right to equal remuneration for work of equal value
Minimum wages are an amount which is set by the government and every organization
and legal entity have to pay minimum wages to their employees according to the amount set by

the government. Living wages mainly determine to the minimum cost to live. The amount
needed to give a living wages depend on what is included in the calculation. This living wages
amount is set by the government low markers for the minimum wages must take into the account
the needs of the business as well as employees of the company.
Applying minimum wages and living wages
TASCO is one of the famous retailer of the UK, who are having 6800 shops in the all
around the word. They are having supermarkets, hypermarket, superstore and convenience shops
in different different countries and more the 45000 employees are working for this company. It
is important for the company to understand their employees requirement and follow the legal
rules and provide them minimum wages and living wages, so they can fulfill their basic needs
(Costa and Machin., 2017). TESCO is having large amount of the employees who are
working in their stores, and they are the reason behind their success. There are some stores of
this company where employees are getting fewer salaries, and they are not able to afford their
basic needs for living. Leaders of the company should take this issue seriously, and they should
provide those employees enough salaries for their living. Employees are one of the important
part of the company, and they are responsible to run TESCO companies operations and tasks.
They have power to make any organization successful if they are motivated, and they are getting
enough salary to fulfill their basic needs. If company will not take this issue seriously then their
workers will be demotivated, and they will not give their best for company, and they will unable
to achieve objectives and goals of the TSCO company. This can effect the companies
probability and, and they can also lose their reputation in the market. TECO company have good
reputation and imagine the market. This was because of their powerful labor force and efficiency
of the workers. If they will not care about the employees, and they will not give them their right
of minimum salaries and living wages then it will effect their employees physically and
employees will not give their best for the company (Grimshaw., 2016). This will effect the
reputation of the TESCO company. It takes too much time to make reputation in the market but
single mistakes can lead them to lose their respect in the market and other companies will
overtake TASCO. This will be impossible for them to make reputation again in the market, so
leaders and mangers of the company should understand this issue and provide this legal rights to
their employees. Employees can earn enough to fulfill their basic needs by working for the
TESCO company.

Cost and benefits for the TESCO
The national minimum wages in the UK is currently 6.50 and the living wage's
foundation of the United Kingdom set the li8ving wages to the 7.85 across the UK for the
London , where it is 9.15. More than the 6 millions people in all around the UK is learning
fewer wages for their living. The living wages are the base bonus calculation for the employees
who look at the 4 family needs to earn and meet their expanses, To live better and proper. Living
wages are also included rent of the rooms , health care , food and groceries for the adult In the
family(Laín and Torrens., 2019). There are some benefits from this legal rules for the
company and employees both. If company give rights to the employees for their minimum
wages and living wages then it can effect their profitability, and they can increase their business
more, and they can make good reputation in the market.
If TESCO company provide this legal rights to their employees then it will motivate
them, and they can fulfill their basic needs and requirement which is important for their living.
Employees of the company will give respect to the superiors of the company, and they will help
company to achieve objectives and goals of their business. This will also affect their work
effecncancy because this legal rights will increase employees morale, and they will understand
importance of the task, and they will do their task more effectively and it will increase their
performance as well. It will also effect the company probability, and they can earn more repeat
among this industry and expand their business more(Laín and Torrens., 2019). Employees
get their in the organization and it is important for them to take proper meal after working in the
company and if TECO will give them minimum wages according to their work then the can
afford proper food for them and next day they can work freshly and with new energy.
Legal regulation theory for Minimum wages and living wages
According to the author(Padley and Hirsch., 2017) A minimum wage are the
lowest legal wages organization can pay to their employees . The UK current national minimum
wages are 7.25 dollar per hour and most of the cities are having their own minimum wages.
Employees of the company receive whichever is highest, so they can earn enough to spend
money on their basic living needs. The main purpose of this low is to stop employees from the
exploiting desperate workers. Minimum wages for the employees provide proper and enough
income, so they can afford a living wages and fulfill their basic needs. Minimum wages lows
were introduced in the new Zealand and Australia first, which was attempt to rise the income of

the unskilled employees now the most devolved modern economy and underdeveloped
economies, expectation included Norway, Singapore, Sweden etc. Recently federal minimum
wages in the UK is $7.25 per hour(Parker and et.al., 2016). It means that this is illegal for
the employees who are working in the company to sell their labor for less than 7.25 per hours
unless the employees of the company falls into the categories specifically exemption from a fair
labor standards act. The UK government assess a Federal minimum wages level to changes into
the cost of living or inflation. Employees federal minimum wages has not increased from the
2009 July. The Fair minimum wages act of the 2007 order that minimum wage to be raised from
the 5.15 in the 3 increment, rising to 5.85 to 6.55 and now finally 7.25. Event through the Even
though the United States enforces a federal minimum wage, individual states, cities, and
localities may pass different minimum wage requirements, provided the stipulated hourly wage
is not lower than the federal minimum wage (Prowse and Fells., 2016). An employer who
is subject to the federal and state minimum wage requirement must pay the higher of the two.
States will usually set a minimum wage that is reflective of the cost of living in the region. For
example, the state of Massachusetts has a minimum wage of $12 per hour, while Montana has a
minimum wage rate of $8.50. In the 2019 this wages rate increases a federal rate in the 29 of the
50 states.
Recommendation
Minimum wages are legal rights of the employees, so they can earn living wages and
fulfill their requirement(Prowse and Fells., 2016). TESCO company should provide legal
rights of the minimum wages to employees who are working in the company and making them
one of the best retail store in the world. This will motivate their employees to work more for the
company and company can get better result from their employees (Wills., 2016). Employees
will be loyal, and they will understand importance of the company, and they will give their best
to make company proud.
CONCLUSION
As per the above report has analyzed the impotence of minimum wages and living wages
for the labor. It has been explained that how this act work and how this can effect the employees
of the TESCO company and this report has been concluded this low on the TESCO and provide
cost and benefits from this low. This report also has been provided theory on the minimum wage
s and living wages and in the end report has been provided recommendation for the company.

REFERENCES
Books and journal
Bell, B. and Machin, S., 2018. Minimum wages and firm value. Journal of
Labor Economics.36(1). pp.159-195.
Brown, W., 2017. The toxic politicising of the national minimum
wage. Employee Relations.39(6). pp.785-789.
Costa, R. and Machin, S., 2017. Real wages and living standards in the
UK. CEP Election Analysis.36.
Grimshaw, D., 2016. Minimum wage. Edward Elgar Publishing Limited.
Laín, B. and Torrens, L., 2019. Barcelona’s minimum living wage initiative.
Padley, M. and Hirsch, D., 2017. A Minimum Income Standard for the UK in
2017.
Parker, J. and et.al., 2016. The living wage: concepts, contexts and future
concerns.
Prowse, P. and Fells, R., 2016. The living wage in the UK–an analysis of the
GMB campaign in local government. Labour & Industry: a journal of the
social and economic relations of work.26(1). pp.58-73.
Prowse, P. and Fells, R., 2016. The living wage–policy and practice. Industrial
Relations Journal.47(2). pp.144-162.
Stabile, D., 2016. Collective Bargaining, Social Insurance, and the Minimum
Wage: A Program for a Living Wage. In The Political Economy of a Living
Wage (pp. 229-255). Palgrave Macmillan. Cham.
Wills, J., 2016. Living Wage. International Encyclopedia of Geography:
People, the Earth, Environment and Technology: People, the Earth,
Environment and Technology. pp.1-2.