Shops (Conditions of Employment) Act, 1938

Preservation of existing rates of wages.

25.—(1) Where, in order to comply with this Part of this Act, the hours of work prevailing immediately before the commencement of this Part of this Act in regard to any member of the staff of a shop are reduced or otherwise altered, the following provisions shall have effect, that is to say:—

(a) the rate of salary, wages, or other reward (excluding overtime pay and any payments made for commencing work earlier or finishing work later than other members of the staff of such shop employed in similar work) payable to such member immediately before such commencement shall not be reduced or be otherwise altered to the detriment of such member merely because of the said reduction or alteration in the hours of work of such member;

(b) the said reduction or alteration of hours of work shall not terminate nor prejudicially affect the contract of service under which such member is so employed immediately before such commencement, and every such contract shall continue in force after such commencement with such modifications only as may be necessary in order to comply with this Part of this Act and in particular the modification that notwithstanding the said reduction or alteration of hours of work the average weekly earnings (excluding overtime pay and any payments made for commencing work earlier or finishing work later than other members of the staff of such shop employed in similar work) payable in a normal full working week to such member under such contract shall not be reduced;

(c) every agreement between (proprietors of shops or a body representative of proprietors of shops on the one hand and members of the staffs of shops or a body representative of members of staffs of shops on the other hand which is in force immediately before such commencement and regulates or restricts the rate of salary, wages, or other reward payable to such member shall (subject to the terms of any subsequent such agreement) continue in force after such commencement notwithstanding the said reduction or alteration of hours of work but with the modification that every rate of salary, wages, or other reward which is fixed or the method of calculating which is fixed by such agreement and every restriction on any rate of salary, wages, or other reward contained in such agreement shall remain unchanged in or as to amount;

(d) every minimum rate of salary, wages, or other reward fixed by statute or under statutory authority which is in force immediately before such commencement shall, if and so far as it is applicable to such member, continue (subject to the terms of any agreement to which such member or a body representative of such member and other members of staffs of shops is a party) after such commencement in force and unchanged in amount notwithstanding the said reduction or alteration of hours of work.

(2) Sub-section (1) of this section shall apply and have effect in relation to every order made under this Part of this Act by the Minister fixing hours of work with and subject to the modifications that every reference in the said sub-section to the commencement of this Part of this Act shall be construed and have effect as a reference to the coming into operation of such order and every reference in the said sub-section to compliance with this Part of this Act shall be construed and have effect as a reference to compliance with such order.

(3) This section shall also apply to wages calculated by direct reference to the number of hours worked, but with the modification that for the purposes of such application every provision in this section to the effect that a rate of wages or a minimum rate of wages or a restriction on a rate of wages is to remain unchanged shall be construed and have effect as a provision that the rate of wages by the hour be so adjusted or varied that the average weekly earnings shall remain unchanged.