Help!

me_me_3

I think I've been ripped of by a company I used to work for, please help advise!

I only worked there for a short time at 22.5 hrs per wk (won't go into the reasons I couldn't stay)- however, when i got my first pay i ralised that for the month i worked instead of getting 5 wks money they paid me a flat one mth- i spoke to them and accepted that if i was to continue over a full yr each month would be my salary divided by 12 so i'd get paid the same each mth- fair enough.
well my next payslip was and is my last, i thought that it was in this one they would pay me for the extra days in the month with 5wks but they didn't - then there were 2 days holiday to add to the pay and this was wrong as they worked it out as if i was full time so i didnt even receive half a days pay for each day oh and it continues but i won't blab on anymore- i just need advice - are they right? who do i go to to get this sorted as going through it all they say i'm getting nothing they owe me nothing but as i work it out they owe me approx £500.

thanks

Savy_3

Sorry to tell you but you may not be owed much money, if any at all.

If you are offered an annual salary and paid monthly, then your monthly salary is usually your annual salary/12. Your employer is under no obligation to pay you extra for this month since you worked a full month the same as everyone else (even if this month was slightly longer than some other months).
If you are paid weekly then you may have a case.

You say you work 22.5 hours/week therefore your average day is only 4.5 hours (22.5/5). Assuming you were in fact owed 2 days holiday, this is a payout of 9 hours worth of work.

Savvy_Sue

Agree with Savy: where I work, if you don't start on the first day of the month, or the first working day of the month, then I will do an adjustment. Otherwise you get 1/12 of your annual salary, even if it's a 'long' month as it were.

The alternative is to pay more in the 31 day months than in the 30 day months - or even to work out each month exactly how many days were your working days. And that way madness lies for those of us who have to tell Payroll who's due what ...

me_me_3

Yes but my contract states that I do 22.5 hrs over 3days per wk not over 5 and they did not calculate it over 5days per wk but over 7 days ???

Fluffi

I agree with Savy and Savvy_Sue. The fact that you work 22.5hrs over 3 days and not 5 isn't relevant I'm afraid. Even if you work 3 days a week if you are on a monthly salary then the number of weeks in a month or number of working days in a week isn't relevant. Your monthly salary should have been worked out by multiplying your weekly pay (Your hourly rate * 22.5) multiplying this by the number of weeks in a year (52) and then dividing by 12. E.g. if you are paid £10 an hour, then that is £225 a week, £11700 a year and £975 on a monthly salary.

Even if started work on the first day of a 5 week month this rule still applies because as Savy_Sue says working out the number of working days in each individual month is a nightmare from a payroll perspective, plus it makes it easier for individuals to balance their bills, DDs and personal finances if they know exactly how much money they will get each month. I'd find it horrible to get less in February just because its a short month!

OP - what does your contract say about your working hrs/days? Does it say 22.5hrs per week? Or 22.5hrs to be worked over 3 days in a week? This information may make a difference to your holiday pay calculation.

me_me_3

I totally understand that when working for a company it is easier for them to calculate monthly pay by dividing the annual salary by 12 to give an equal amount of wage throughout the year, and i do not dispute this-
what i do dispute is that when you leave a company after not ending a full year they calculate your pay differently thus the 2 induction days i completed were 2 full days they forgot to pay me ages ago so intead of £100 for each day(which was my daily rate) i ended up with £40 for each day.

So think of it this way- if you work full time - 5days per week and you leave your company without completing the full year that you are in any holiday pay they owe you they will calculate that as if you would have been working 365 days per yr so your daily rate for those days (and any days that you have completed in that month) would be approx 1/3 less than they would be if you continued to complete a full tax year.
would you be happy to finish on a much lower wage for days you had worked fully?? (and for any holiday days they owed you???)????

timmmers

1/12th is fair if you stay a year.
1/52nd is accurate if you don't.

I'd say they owe you what you earned.

I don't see you mention how your rate was stated anywhere...except 100 a day?
That doesn't suggest a salary.

t

me_me_3

my salary is stated as per annum inclusive for 22.5hrs per week complete over 3days (days as agreed in terms)

there is nothing that says but when we work out your salary we will pretend you work 7 days a week for 22.5hrs and rip you off

Fluffi

me_me wrote: »

So think of it this way- if you work full time - 5days per week and you leave your company without completing the full year that you are in any holiday pay they owe you they will calculate that as if you would have been working 365 days per yr so your daily rate for those days (and any days that you have completed in that month) would be approx 1/3 less than they would be if you continued to complete a full tax year.
would you be happy to finish on a much lower wage for days you had worked fully?? (and for any holiday days they owed you???)????

Not true, if you work 5 days a week then a company works out that there are 260 working days in a year. So your daily rate for holiday pay is based on 260 (52*5) working days not 365. This is how my company works out how much to deduct for additional unpaid leave taken. If you take 2 days unpaid leave then you lose 2/260 of your annual salary and that is deducted from the relevant month's pay. If I was owed 5 days holiday on resigning then I'd expect 5/260 of my salary.

The reason I asked whether your contact was based on 3 days a week or 5 earlier was for this reason, your holiday pay should be worked out based on 156 days if your contract says 3 days but if its a 5 day contract and you can choose how your work your hours then 260 days would be correct I think.

me_me_3

Thanks Fluffi - that's what I was trying to point out (maybe need to be better with my wording) no company should be working out pay over 365days whether we're full/part time it should be just as you said adjusted as to how many hours/days you are permenantly employed for and the salary signed up for.

Thanks again

mountainofdebt

OP how did you work out your daily rate of £100?

When I work out my daily rate, I have always taken my annual salary, divided it by 52 and then by the number of hours I work in a week.

Using this formula, the OP's salary would have been approx £13 per hour or £15,600 p.a

Also OP when does the holiday start & end - and when did your employment start and finish?