Discussing compensation

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  1. #1

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    Discussing compensation

    Hi all,

    My employment contract states that I cannot discuss my compensation with other employees. Now recently I have been awarded an education grant which pays for part of my mba. The grant was approved by mgmt and is significantly more than the standard education allowance which can approved by HR.

    When a colleague asked me if the company paid my tuition I explained the situation without naming any numbers. This colleague is interested in doing an mba herself and must have spoken to HR as a few days later I received a fuming email from the HR manager to remind me that I have to keep this grant confidential (which they never told me before outside of the general notice in my contract).

    What do you guys think? Can a company ask employees to keep compensation confidential? Can they expect me to lie when a colleague asks this question?

    I personally hope that many of my colleagues will receive tuition reimbursement but our HR seems to worry only about the money spent (despite all the talk of career development, continued education, talent development, etc).

    Chris.


  2. #2

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    [QUOTECan a company ask employees to keep compensation confidential?][/QUOTE]

    The answer is yes, but not for much longer in the UK.


  3. #3

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    It's pretty standard in most companies to keep pay confidential. It generally helps to avoid resentment breeding between colleagues amongst other things.

    You don't need to lie, just don't answer the question. If the grant is a possibility and mentioned in company manuals/intranet, just mention a link or that it may exist.


  4. #4

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    Just be upfront and tell them you can't disclose under terns of the arrangenent. Peole should be resobable and understanding its not your call.
    Posted via Mobile Device


  5. #5

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    Speak to your boss and explain that you did not reveal anything and ask if it is company policy that no one divulge if they got an education grant. I guess if they give differing amounts depending on the worker is then keeping it quiet might be expected. Your boss can advise if you should go back to HR and let them know you do nothing wrong.

    I love the old joke:

    Boss is giving one of his staff their raise and advises: "Don't tell anyone how much you got."

    Employee: "Don't worry I won't tell a soul. I am just as embarrassed as you are."


  6. #6

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    Quote Originally Posted by fth:
    It's pretty standard in most companies to keep pay confidential. It generally helps to avoid resentment breeding between colleagues amongst other things.

    You don't need to lie, just don't answer the question. If the grant is a possibility and mentioned in company manuals/intranet, just mention a link or that it may exist.
    Though it does have the potential to hide favouritism and discrimination, hence the reason it is being scrapped in the UK. For example how do the women in the workplace know if they are being paid less than the men doing the same job if they are not allowed to know how much the men earn?

    But yes, given the position of the OP just politely refuse to answer.
    Last edited by hullexile; 07-10-2010 at 01:12 PM.

  7. #7

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    Besides, it is stated on your contract, which I assume you had signed, that this is to be kept confidential.

    I guess you could take it up with HR that you want to tear up your present contract and draw up a new one, more-or-less the same, but without this confidentiality clause, if you feel that it is questionable.

    Until then, why not respect your end of the agreement?


  8. #8

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    From what the op said he did respect the agreement and did not disclose the amount. I would be just as annoyed to get an email from hr in such circumstances. I think a polite email back to hr (possibly copied to boss) should be sufficient.
    On the general question, I think it's pretty pathetic to have confidentiality clauses re money and would resist signing one - indeed would be rather suspicious of any firm wanting such!
    Posted via Mobile Device


  9. #9

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    Quote Originally Posted by MovingIn07:
    From what the op said he did respect the agreement and did not disclose the amount...
    Is it not possible that he might have?

    From what the OP has said:

    - He did not disclose a number.
    - There is a known standard education allowance.
    - An exception was made in his case, and he was granted a higher allowance.
    - He explained his situation to a colleague. No numbers, yes, but that, in his situation, the allowance is above company standard.
    - The colleague inquired about this with HR, thus giving away the fact the OP revealed his exceptional compensation to his colleague, something that the clause is intended to prevent.

    Regardless of one's opinion on this kind of confidentiality clause, and I don't have an opinion on this subject, he agreed to it by signing the contract and it appears as though he breached the clause. Why would a warning letter from HR be annoying? HR must be annoyed that he revealed more than he should have.

  10. #10

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    Those clauses are always pretty much a joke

    After 5 years in the same company now, I pretty much know the salary of at least 100 of our employees here in HK...really sometime HR....