This gives the employee some security if the employer does not provide enough work
in a particular period. The way that system works is that if an employee’s earnings for
the amount of units produced in the period are lower than the guaranteed amount then
the guaranteed amount will be paid to the employee.
Illustration:
Fernando is paid £3.00 for every unit he produces, but he has a guaranteed wage of
£28.00 per day. In a particular week he produces the following:
Monday- 12 units; Tuesday- 14 units; Wednesday- 9 units; Thursday- 14 units; Friday- 8 units.
Calculate his wage for this week.