unpaid accrued Holiday

Takeaway_Addict

Legally it looks like you have a claim but morally? Probably not as they've more than paid really.

Also remember you risk any potential reference if you take them to a tribunal

purpleozzie

In terms of reference I'm not that bothered because I've got another job.. Morally I am a little mixed as they didn't have to pay me the ex-gratia payment however they did get rid of me above other people in the company even though my sales figures were better than others just because I had less industry experience and at the worst time to look for another job...

Jules2012

Does your holiday pay owed equal more than the gratia payment?

If you insist on claiming for your holiday pay can they not then decide they what that extra payment back?

Takeaway_Addict

purpleozzie wrote: »

In terms of reference I'm not that bothered because I've got another job.. Morally I am a little mixed as they didn't have to pay me the ex-gratia payment however they did get rid of me above other people in the company even though my sales figures were better than others just because I had less industry experience and at the worst time to look for another job...

Still, what happens if you get booted from this company on bad terms in 6 months? That's one year with no references. It may not happen and you may work at the current company for years but its something to bear in mind. I'm not saying it to scaremonger but to make you think about possible action going forward and whatever you decide you decide eyes open.

And try not to take it personally, they got rid of you because they could and you were most likely the cheapest less risk option.

getmore4less

I think they intended to offer the payment to meet all their obligations just made a mistake in the second part of the letter.

Valli

Doesn't matter what we think then or what the morals are; it would appear that the company have failed to pay you correctly and have possibly also failed in regards to correctly deducting Tax and NI (and, possibly, other deductions eg student loan repayment?) from the 'ex gratia' payment, which would, I assume, be seen by HMRC as taxable.
What does your P45 say you have been paid and are deductions correctly recorded?

purpleozzie

Surely ex-gratia payments are free from tax and NI anyway??

Officially they handed me the letter on the 23rd November so even though it says notice period is included within ex-gratia they paid me an extra week anyway paying me up to the 30th November..

Will the wording of the letter potentially get me into trouble from the taxman later on down the line..

Pricivius

I'm confused. The letter suggests your ex gratia payment includes your one week notice pay. This should have been taxed and NICs deducted and your employer should also have paid employer NICs. If this didn't happen, I would suggest there is likely to be a tax and NIC liability.

As for accrued but unused holiday pay, it sounds as though they may have made an error in the wording of their letter - they probably intended the ex gratia payment to include notice pay and holiday pay.

Your options are to let it go on the basis they paid you more than you were entitled to, or to pursue them for it. A tribunal claim will take time and effort and may be quite stressful and there are no guarantees of success. You will need to take time off work to attend and you are highly unlikely to be able to claim your costs.

As for the company, it would appear no good deed goes unpunished.

Valli

purpleozzie wrote: »

the letter I received and signed states

"As you are within your probationary period the statutory basis for the termination of your employment is one weeks notice plus accrued but untaken holiday. However, I am able to confirm that at the termination date the company is prepared to make an ex-gratia termination payment as compensation for your loss of employment. This will be inclusive of your statutory one week's notice and will be made free of tax. Notwithstanding this I confirm that in the event of HMRC determining that tax is payavle on the termination payment that liability will rest with you and you will fully indemnify the company in all respects in this matter."

Looks like the company know full well this payment may indeed be taxable and that they THEN expect the employee to pay it!

purpleozzie

Now I'm confused.. I probably won't fight for the money they owe me but am now concerned that HMRC are going to get the hump and I'll be liable for a payment come end of April..