Salary refund but no interest
dontlikemondays
Posts: 110 Forumite
Hi Guys,
My employer had been paying me at a lower rate than they should have for 3 years. It only came to light recently when I noticed lower hourly pay than should have been.
They have admitted the mistake and sent me the back pay. However, I feel they should have added interest for every month they made the mistake a bit like they do with the PPI
Have I got any right to interest on backpay like this?
My employer had been paying me at a lower rate than they should have for 3 years. It only came to light recently when I noticed lower hourly pay than should have been.
They have admitted the mistake and sent me the back pay. However, I feel they should have added interest for every month they made the mistake a bit like they do with the PPI
Have I got any right to interest on backpay like this?
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Comments
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How much are we talking about? Because current interest rates are 0.25%0
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It would be worth pennies.... just be grateful you got your backpay.
Move on - and, in future, take a bit more interest in how much you're being paid so you can flag it up sooner. You are almost as much "at fault" here as them.... they made a mistake, which is human, they do many employees. You only had ONE JOB to do, check YOUR pay .... and, quite frankly, you failed.
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Obviously, I was just pointing out that the likely interest rate claim on a small amount wouldn't even be worth chasing........
It depends. I know on late b2b payments you can charge something like 8% interest. 3 years on an average uk salary at 8% probably is worth chasing.
I dont know the exact rules on employer underpayments though. Doesnt sit quite right that an employee should potentially miss out. Although i do understand people should check their pay.0 -
It depends. I know on late b2b payments you can charge something like 8% interest. 3 years on an average uk salary at 8% probably is worth chasing.
I dont know the exact rules on employer underpayments though. Doesnt sit quite right that an employee should potentially miss out. Although i do understand people should check their pay.
Uhm, are you thinking of the court allowed interest rate? Because I don't think the rules are strictly on commercial debts (in fact I'd wager commercial debts are more likely to be governed by contract)
As for 3 years on an average UK salary at 8%, sure, that would be significant. but the OP was underpaid, not unpaid.
It could be as little as pennies per hour. Even at £1 an hour and assuming that the courts would allow the interest rate charge of 8%, you're looking at approx. £4-500. Worth taking your employer to court over that amount when the mistake is partially your own?0 -
Generally on employer underpayments you would need to show your losses. That would mean producing bank statements showing the rate of interest your current account pays and working out the monthly amount due on the underpayment each month.
You don't calculate a flat figure like a% on the entire period - you would need to prove loss per month.
If you have gone overdrawn or incurred fees as a result of the losses, you might try to reclaim those (with evidence) but the argument that your should have checked properly and knew what your income was may well cancel out a claim on those costs.Some days, it's just not worth chewing through the leather straps....
LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!
May grocery challenge £45.61/£1200 -
Uhm, are you thinking of the court allowed interest rate? Because I don't think the rules are strictly on commercial debts (in fact I'd wager commercial debts are more likely to be governed by contract)
As for 3 years on an average UK salary at 8%, sure, that would be significant. but the OP was underpaid, not unpaid.
It could be as little as pennies per hour. Even at £1 an hour and assuming that the courts would allow the interest rate charge of 8%, you're looking at approx. £4-500. Worth taking your employer to court over that amount when the mistake is partially your own?
Yeh sorry shouldve specified court allowed interest rate.
I was going to post to pastures new that its a bit unfair to blame the OP. Whilst people should check their pay ive worked at several places where i have struggled to get the same numbers the company have largely to a lack of clear information on your average payslip, if it was simple enough for anyone to understand then i would agree, id say i understand pay more than the average person (its my job) but on a few occasions ive been stumped because the information needed isnt there. You ask to be told its rights so and so forth.
OP isnt the first, the last or the only who this will happen to.
I probably wouldnt take my employer to court although i would say im disappointed about the missed oppotunities, theyd probably understand and we'd agree a payment. My employer is pretty cool like that though and im pretty cool in that i wouldnt storm in there demanding to take them to court. Then i'd offer to take him out for a beer. :beer:0 -
It's pretty easy. There is no legal right to interest on the underpayment.0
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How can anybody be underpaid for 3 yerars before they notice?0
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