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  • FIRST POST
    • dontlikemondays
    • By dontlikemondays 13th Oct 17, 1:55 PM
    • 91Posts
    • 6Thanks
    dontlikemondays
    Salary refund but no interest
    • #1
    • 13th Oct 17, 1:55 PM
    Salary refund but no interest 13th Oct 17 at 1:55 PM
    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?
Page 1
    • Comms69
    • By Comms69 13th Oct 17, 2:01 PM
    • 1,212 Posts
    • 1,003 Thanks
    Comms69
    • #2
    • 13th Oct 17, 2:01 PM
    • #2
    • 13th Oct 17, 2:01 PM
    How much are we talking about? Because current interest rates are 0.25%
    • spadoosh
    • By spadoosh 13th Oct 17, 2:08 PM
    • 4,659 Posts
    • 6,110 Thanks
    spadoosh
    • #3
    • 13th Oct 17, 2:08 PM
    • #3
    • 13th Oct 17, 2:08 PM
    How much are we talking about? Because current interest rates are 0.25%
    Originally posted by Comms69
    Thats the bofe base rate. Base rates are only applicable to banks. I doubt the OP is a bank.
    Don't be angry!
    • Comms69
    • By Comms69 13th Oct 17, 2:10 PM
    • 1,212 Posts
    • 1,003 Thanks
    Comms69
    • #4
    • 13th Oct 17, 2:10 PM
    • #4
    • 13th Oct 17, 2:10 PM
    Thats the bofe base rate. Base rates are only applicable to banks. I doubt the OP is a bank.
    Originally posted by spadoosh


    Obviously, I was just pointing out that the likely interest rate claim on a small amount wouldn't even be worth chasing........
    • PasturesNew
    • By PasturesNew 13th Oct 17, 2:13 PM
    • 60,932 Posts
    • 355,903 Thanks
    PasturesNew
    • #5
    • 13th Oct 17, 2:13 PM
    • #5
    • 13th Oct 17, 2:13 PM
    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.

    • spadoosh
    • By spadoosh 13th Oct 17, 2:17 PM
    • 4,659 Posts
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    spadoosh
    • #6
    • 13th Oct 17, 2:17 PM
    • #6
    • 13th Oct 17, 2:17 PM
    Obviously, I was just pointing out that the likely interest rate claim on a small amount wouldn't even be worth chasing........
    Originally posted by Comms69
    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.
    Don't be angry!
    • Comms69
    • By Comms69 13th Oct 17, 2:22 PM
    • 1,212 Posts
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    Comms69
    • #7
    • 13th Oct 17, 2:22 PM
    • #7
    • 13th Oct 17, 2:22 PM
    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.
    Originally posted by spadoosh


    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?
    • bargainbetty
    • By bargainbetty 13th Oct 17, 2:23 PM
    • 3,101 Posts
    • 7,142 Thanks
    bargainbetty
    • #8
    • 13th Oct 17, 2:23 PM
    • #8
    • 13th Oct 17, 2:23 PM
    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!
    MFW - Joined May 2012, aiming to cut the mortgage by an extra two months every year. (Overpaid £3000 so far)
    , only 11 years to go.

    • spadoosh
    • By spadoosh 13th Oct 17, 2:34 PM
    • 4,659 Posts
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    spadoosh
    • #9
    • 13th Oct 17, 2:34 PM
    • #9
    • 13th Oct 17, 2:34 PM
    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?
    Originally posted by Comms69
    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.
    Don't be angry!
    • sangie595
    • By sangie595 13th Oct 17, 4:48 PM
    • 4,162 Posts
    • 6,849 Thanks
    sangie595
    It's pretty easy. There is no legal right to interest on the underpayment.
    • z1a
    • By z1a 13th Oct 17, 5:20 PM
    • 803 Posts
    • 645 Thanks
    z1a
    How can anybody be underpaid for 3 yerars before they notice?
    • ohreally
    • By ohreally 13th Oct 17, 5:44 PM
    • 6,356 Posts
    • 4,862 Thanks
    ohreally
    How can anybody be underpaid for 3 yerars before they notice?
    Originally posted by z1a
    Lack of clarity/ ambiguity around pay rates.
    • sangie595
    • By sangie595 13th Oct 17, 5:54 PM
    • 4,162 Posts
    • 6,849 Thanks
    sangie595
    Lack of clarity/ ambiguity around pay rates.
    Originally posted by ohreally
    More often than not, never checking their payslip! I came across one of these a couple of months ago, underpaid by £3k a year! Admittedly, on a high salary to start off but he'd never once looked at a payslip! Just like people don't read contacts before they sign them!
    • Majestic12
    • By Majestic12 15th Oct 17, 1:53 PM
    • 137 Posts
    • 55 Thanks
    Majestic12
    Lack of clarity/ ambiguity around pay rates.
    Originally posted by ohreally
    Why would anyone take a job if they were unsure about their pay and pay structure?
    • badmemory
    • By badmemory 15th Oct 17, 7:16 PM
    • 1,050 Posts
    • 1,105 Thanks
    badmemory
    Why would anyone take a job if they were unsure about their pay and pay structure?
    Originally posted by Majestic12
    Because they have absolutely no idea how to convert something into a monthly reality. No idea how much they will be paying in tax & NI. No idea that a pension payment may change their take home pay. Put it another way - many people are financially illiterate. Not in the sense of actually getting into debt but the more basic stuff of making sure they are getting value for money. Read on the energy forum how many people think that paying the DD the supplier says is the fixed price they signed up to, when actually it is the price per Kwh & the standing charge which is fixed.

    It is becoming almost an epidemic, caused in the main by people not paying attention & expecting it will all be alright & leaving it to someone else who they are sure will get it right.

    ETA sorry folks rant over!
    Last edited by badmemory; 15-10-2017 at 7:25 PM.
    • Sarastro
    • By Sarastro 21st Oct 17, 12:52 PM
    • 323 Posts
    • 243 Thanks
    Sarastro
    the mistake is partially your own?
    Originally posted by Comms69
    It's not his mistake, it's the employers. He just didn't notice it.
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