We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

"Fines" in pay packet!

2

Comments

  • catieeb06 wrote: »
    Hi Guys,

    This is on behalf of my OH. He works for a company and let's call them ABC Security who provide security services on behalf of several large organisations and the one that my OH works for is a well known supermarket.

    In his induction he was told that if he didn't give more than 5 hours notice that he was unable to attend work that day then not only would they not pay him for that (that's fine, I don't get paid if I am ill and don't attend work) but they also "fine" him £50.

    He's never actually phoned in sick in the 7 months and even phoned work when all the snow hit to let them know there was a chance he wouldn't make it to work the next day- he did, managed to grab a taxi.

    Just wondering- is this "fine" something that can be challenged or is it simply because it's in his contract so it's something that he has to live with?

    All help much appreciated!!

    Catie x

    As he has worked for this company for 7 months he should have received a written statement of his terms of employment. What does it say there about such a deduction?
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    vax2002 wrote: »
    no contract can over rule law, if the fine is a penalty which it is, then only an act of parliament can administer a penalty and anything in the contract to the contrary is illegal.
    "Fine", "Penalty". They are terms many people and organisations get mixed up. You are right real "fines" are only issued by a court for a criminal matter. "Penalties" are issued for a civil wrong. Whatever they called it it is essentially a deduction from pay and whether it's authorized or not depends on his contract but minimum wage laws do override that.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • vax2002
    vax2002 Posts: 7,187 Forumite
    A contractual deduction is what a penalty is.
    They are legal deductions an employer is allowed to make in Law.
    Contractual deductions are penalties which are unlawful, it makes no difference signed or not.
    The contract will be unlawful if it allows contractual penalties.
    Employment law states an employer shares in the profits of labour they also share in the losses and an employer can not pass losses on to an employee.
    So any contract is irrelevant, the employer has no legal right to charge losses to an employee.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    vax2002 wrote: »
    A contractual deduction is what a penalty is.
    They are legal deductions an employer is allowed to make in Law.
    Contractual deductions are penalties which are unlawful, it makes no difference signed or not.
    The contract will be unlawful if it allows contractual penalties.
    Employment law states an employer shares in the profits of labour they also share in the losses and an employer can not pass losses on to an employee.
    So any contract is irrelevant, the employer has no legal right to charge losses to an employee.
    Are you saying the direct.gov website is wrong in saying that an employer can make deductions if an employee agrees to it by being in the contract of employment? The website even details till shortages and explains an employer can keep on deducting 10% every week until the till shortgage is repaid.

    http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_175878
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • vax2002
    vax2002 Posts: 7,187 Forumite
    No I am saying the contract has to be lawful.
    any more questions ?
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • HappyMJ wrote: »
    Are you saying the direct.gov website is wrong in saying that an employer can make deductions if an employee agrees to it by being in the contract of employment? The website even details till shortages and explains an employer can keep on deducting 10% every week until the till shortgage is repaid.

    http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_175878
    Government websites are not always right ...

    In the case of till shortages, this is a clearly identifiable loss which is recovered, which plainly sets the deduction apart from a penalty. In the OP's OH's case, if it costs an extra £20 to get short notice cover, then £30 is a penalty.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • His contract says that it is down to managers discretion whether the deduction is taken.

    I thought my maths was wrong but it was a late night last night and my befuddled mind wouldn't work!
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Government websites are not always right ...

    In the case of till shortages, this is a clearly identifiable loss which is recovered, which plainly sets the deduction apart from a penalty. In the OP's OH's case, if it costs an extra £20 to get short notice cover, then £30 is a penalty.
    £6.50 multiplied by 7.7 hours is £50.05 that they would have to pay for another security person to cover his shift then add employer national insurance contributions on the payment and an additional amount for hoildays. They may have got this person from an agency for which they would have to pay agency fees. They may have had to pay for travel for them to get to the right location. They would have had to spend some time on the phone organising someone at the last minute. They don't have to justify why it's £50 but if they did it would not be hard to get to £50 worth of additional expenses.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • patman99
    patman99 Posts: 8,532 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Photogenic
    Even till deductions are illegal these days.
    Never Knowingly Understood.

    Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)

    3-6 month EF £0/£3600 (that's 0 days worth)

  • hcb42
    hcb42 Posts: 5,962 Forumite
    I am interested in this, as I hear deductions all the time in my industry.

    If a till is down, or someone breaks something, or loses their name badge say, are companies allowed to deduct pay - assuming the charge would not take anyone under minimum wage?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.