Paying back previous employer.

Rhod81

Hi everyone.

Got a little issue and would appreciate anyones assistance in letting me know where I stand.

Back in mid January I was made redundant from the company I worked at for nearly ten years. I received no warning that redundancies were a possibility until I was pulled into the office and got the "Sorry about this... etc.". I got a tidy little pay out of redundancy, holidays owed and a month notice.

I could understand why it had happened. I was the third wave of redundancies over a four year period, and to be honest, the company is circling the drain. I was a fairly high earner so obviously it was a reasonable saving for the company.

Now, I was extremely fortunate to walk into another job the following week. The new job is on a par money-wise, closer to home and with much better opportunities.

But... due to the sudden departure from my previous job, I had a personal account with the company (it was a builders merchant) with a balance of a little over £800.

My point is, what are the legal obligations for repaying my account? I contacted the accounts manager a few weeks back (twice) to get bank details and have set up a standing order of £50 per month, but also stating that I'll pay extra each month depending on what I have left at the end of it to get it paid off as soon as possible.

To be honest, I had completely forgotten about the account and, due to fact I got another job, had invested most of the money I received into a no-access savings thing. I feel I should at least be offered the same degree of leniency offered to previous employees given the boot; i.e. allowed to pay off their account over time... There are several other employees that left over 4 years ago with money still outstanding !

Today, the boss texted me saying that paying £50 per month is not acceptable and they want the full payment by the end of March. (neglecting to mention that I had in fact offered more per month). He said he didn't know of the outstanding account (unlikely) and the fact that I had redundancy pay can afford to pay it.

Whilst technically I guess I could pay it back in one go, and I'm not trying to squirm out of my debts, I don't feel I should have to when other employees have had time...

What you think?

Thanks

McKneff

Other employees are irrelevant.

You owe it, they are under no obligation to allow you to pay it in installments. Presumably they have to pay the supplier on a monthly basis. Hardly fair of you especially as they gave you employment for nearly 10 years. I'm a big one for loyalty.

By the way, if you worked for the company for nearly 10 years you should have had 9 weeks notice, a week for every full year you worked so I would check up on this. (in your post you said you got a months notice)
If you can pay it and you say you can it's out of your hair and you can get on without thinking about it any more.

DVardysShadow

McKneff wrote: »

... You owe it, they are under no obligation to allow you to pay it in installments. Presumably they have to pay the supplier on a monthly basis. Hardly fair of you especially as they gave you employment for nearly 10 years. I'm a big one for loyalty.

Loyalty is obviously a 1 way street up a very steep hill. You work for a company for 10 years. The employer owes no loyalty and can make the employee redundant. The employee owes loads of loyalty, even after being made redundant and should pay the money back on the spot.

Me, I think that Rhod should pay back on the same terms as while employed, unless there is anything specific in the T&C's relating to redundancy or termination of employment.

Rhod81

Yeah, well thats another thing...

I actually worked for them for little over ten years. However, after about three years, I briefly left for a few months for pastures new, but the grass wasn't greener... They approached me and offered me a better deal, and as I wasn't content with where I was, I accepted it.

As part of that deal I was told not to worry about leaving them. As far as they were concerned there had been no lapse in employment. As I was young and naive, I didn't get it in writing, and when I brought it up a few weeks back was told to be thankful of what I got as the company changed names three years back and in doing so, sacked all the employees and then re-hired them.

Not very good, I know, but seeing as though, strictly speaking I did leave for a few months, I didn't push it...

DVardysShadow

Rhod81 wrote: »

...
I actually worked for them for little over ten years. However, after about three years, I briefly left for a few months for pastures new, but the grass wasn't greener... They approached me and offered me a better deal, and as I wasn't content with where I was, I accepted it.

As part of that deal I was told not to worry about leaving them. As far as they were concerned there had been no lapse in employment. As I was young and naive, I didn't get it in writing, and when I brought it up a few weeks back was told to be thankful of what I got as the company changed names three years back and in doing so, sacked all the employees and then re-hired them.

Not very good, I know, but seeing as though, strictly speaking I did leave for a few months, I didn't push it...

But you have 7 years service and you are being fobbed off with 3 years redundancy? Did you know you were sacked and rehired 3 years ago? Because if you were, you should have had 4 years redundancy at the time - or your rights to redundancy preserved to the present time under TUPE.

In your position, I would be investigating further and not paying back the trade account until I was sure that they did not owe me anything. Obviously, put the money aside.

Sambucus_Nigra

What does your contract say about settling employee accounts upon redundancy?

Rhod81

Sambucus_Nigra wrote: »

What does your contract say about settling employee accounts upon redundancy?

There is no contract regarding such things. As a company they were very disorganised when it came to any legal stuff.

They've always just relied on people paying off their debts under their own steam. It may seem generous, but really it's down to general managerial apathy and incompetence.

I think the only reason they're pursuing me so soon is that they're in quite a bit of financial trouble.

As I said, I'm not trying to shirk my debts, but even with a lump of cash in the bank, an £800 bill in one go is a touch excessive. I have set up the £50 a month standing order, but in actual fact could probably afford £200 per month (in a good month)- and intend to pay that much. But, I have commitments. I'm also aware that should I be made redundant again, I'll be stuffed regarding redundancy. Being made redundant after ten years has made me quite paranoid !

Sambucus_Nigra

Rhod81 wrote: »

There is no contract regarding such things. As a company they were very disorganised when it came to any legal stuff.

They've always just relied on people paying off their debts under their own steam. It may seem generous, but really it's down to general managerial apathy and incompetence.

I think the only reason they're pursuing me so soon is that they're in quite a bit of financial trouble.

As I said, I'm not trying to shirk my debts, but even with a lump of cash in the bank, an £800 bill in one go is a touch excessive. I have set up the £50 a month standing order, but in actual fact could probably afford £200 per month (in a good month)- and intend to pay that much. But, I have commitments. I'm also aware that should I be made redundant again, I'll be stuffed regarding redundancy. Being made redundant after ten years has made me quite paranoid !

In that case, the terms and conditions relating to 'being a customer and having an account' may well apply, and you may end up stiffed for a 30 or 60 day arrangement.

You may or may not be stuffed regarding redundancy in the future - but I doubt this debt will make any difference to any future redundancy situations....you have got redundancy money, personally I'd get the debt paid off but each to their own.

McKneff

If you worked a full 7 years with out a break in your employment you are entitled to 7 weeks notice, or 7 weeks PILON, full stop, luck has nothing to do with it.