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Owing an Ex Employer Money

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Hi Guys,

Wasn't sure where to post this, but hopefully someone can help me!

I've recently left a job only a day after my payday. My firm asked me not to work my notice period and asked me to leave with immediate effect. This suited me fine, and we agreed that to enable me to start my new role immediately, they wouldn't pay me for my notice period. Again I was happy with this as starting my new role immediately meant I was not missing out on pay.

They how now however sent me a letter saying I owe them money, for excess holiday I took against my allowance up to the time my employment with them ceased.
Also, whist an employee I entered into the cycle to work scheme and purchased a bike.

There is money outstanding on the balance of the bike also.

Whilst I have no disputes as to the money owed to them and I am happy to pay them back what is owed (around £1000) I am not in a financial position to make this payment in the lump sum that they are requesting.

I have suggested a repayment scheme of £150 a month until I have paid back what I owe. This is an affordable sum for me.

My ex employer has rejected this proposal and instead demanded the money in one payment or he is threatening legal action.

What can I do in this situation? Can they take me to court when I have agreed to pay them back and make a proposal for a repayment scheme?

Any advice would be much appreciated.

Cheers
Sam
«1

Comments

  • System
    System Posts: 178,349 Community Admin
    10,000 Posts Photogenic Name Dropper
    I think they can take it to court but to be honest it might just be an empty threat. Your proposal sounds decent (was it in writing?) and they are fools for rejecting it to be honest, especially when it was their fault for not mentioning it!! They didn't want you to work your notice period, so more fool them as they could've deducted it from your final salary.

    If they do take it to court then you will have 14-21 days (I think) to defend the claim. Then I believe a judge will have to make a decision. In my experience (I work in credit control and quite often have to take legal action) the judge will side with a person over a company, especially when you are making every effort to pay back the debt, which you are, and so they would have wasted their time & money trying to get the debt settled quicker.

    I would send them a letter saying that you are not able to pay the debt in full, but will pay £150.00 per month (list the dates). All communication from now on needs to be made in writing. Also, double-check that the amount they are chasing is correct.

    Hope this helps!!!
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • fatbelly
    fatbelly Posts: 22,979 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    You may wish to point out to the employer that if he takes court action, the courts will allow you to repay over a 'reasonable timescale'. This is usually taken to be 3-5 years. You are offering to repay over 6-7 months! If he takes action you will defend the claim on the basis of the 'overriding objective'. (you can google this)

    I suspect that if you start to make the payments you suggested they will just be accepted.
  • datlex
    datlex Posts: 2,252 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I would counter claim for the lost pay. Pay in lieu of notice it is called.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • matttye
    matttye Posts: 4,828 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    datlex wrote: »
    I would counter claim for the lost pay. Pay in lieu of notice it is called.

    Probably can't do that if he agreed to leave without working it.
    What will your verse be?

    R.I.P Robin Williams.
  • Thanks for the information and help guys, it's much appreciated.

    The proposal I have made is indeed in writing and so is 99% of the other communications.

    Thanks guys :)
  • Prothet_of_Doom
    Prothet_of_Doom Posts: 3,267 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    fatbelly wrote: »
    You may wish to point out to the employer that if he takes court action, the courts will allow you to repay over a 'reasonable timescale'. This is usually taken to be 3-5 years. You are offering to repay over 6-7 months! If he takes action you will defend the claim on the basis of the 'overriding objective'. (you can google this)

    I suspect that if you start to make the payments you suggested they will just be accepted.

    ???????So should the letter state?????

    : Following my earlier offer to repay at £150 a month which was made under devere stress, I have had more time to review my financial situation properly, with the help of a professional debt expert.

    Unfortunately I have been shown that my earlier offer was a tad optimistic and I would have been in danger of defaulting, so I find, with professional advice from a debt counsellor, that I will be able to pay £30 a month, and, provided my circumstances do not change for the worse, there will be much less likely hood of me failing to make payments.

    If you insist on theatening court action I have been advised that my reasonable and timely offer will be considered favourably by the court, and your heavy handed attitude may be treated as unneccessary bullying and harassment.

    My first payment of £30 is included in a cheque enclosed, and if you forward your bank details, I will set up an automatic payment via Bac on the 12th of every month, until.....


    There is no need to respond to this letter, other than to supply bank details, because by banking the cheque I will consider that my formal offer has been accepted.

    Cheers



    Might need a bit of a editing ?
  • fatbelly
    fatbelly Posts: 22,979 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    I have suggested a repayment scheme of £150 a month until I have paid back what I owe. This is an affordable sum for me.

    Cheers
    Sam

    Stick with that
  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    dropping to £30 says to me your taking the ..... , your ex boss is likely then to take you to court and win and you get a ccj
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • chanz4 wrote: »
    dropping to £30 says to me your taking the ..... , your ex boss is likely then to take you to court and win and you get a ccj


    I agree with you if I was his boss I would be heading to court.

    That said what where the repayment agreement if you stayed there working ?
    In London, you're never more than 20 feet away from someone telling you you're never more than 20 feet from a rat .
  • fatbelly
    fatbelly Posts: 22,979 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    chanz4 wrote: »
    dropping to £30 says to me your taking the ..... , your ex boss is likely then to take you to court and win and you get a ccj

    ...and an examination of your finances. You would still end up with having to pay £150 per month if that's what you can afford.

    Sorry,' prothet' you may have misunderstood what I was saying. It was that the offer of £150 was more than reasonable and court action with its added costs is clearly unnecessary.

    op does have to start making those payments though.
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