Employer deducting money from final wage packet

enkoda

Two of my friends have recently decided to quit their jobs at the same high street retailer, and found that upon receipt of their last payslip, they have been deducted a substantial amount from the final weeks wages. One of them lost around two thirds of their final wage packet (around £240) and the other was paid nothing due to this deduction (about £150).

Back in 2009, their company advanced/loaned them some holiday hours, details of which were in a letter apparently sent out to all members of staff, signed and returned agreeing to this. Neither of them remember receiving this letter.

This advance is also being deducted at their current wage rate, rather than the rate they were on back in 2009.

Am I right in thinking that:

1. their employer has broken the law by effectively paying them less than the minimum wage rate?
2. any money owed to the company can be asked for, but not automatically deducted from their wages (even if the employer has to seek repayment via the courts)?
3. even if the company is legally entitled to recoup this money from their wages, can it be done at this year's rate of pay?

Also, is there a time limit in which they can appeal?
And just to add, neither of them have asked for copies of this alleged signed letter....

Any help would be appreciated, but I suspect by my friends' disgust at how they've been treated after 5+ years service, it's pretty much done and dusted now!

amiehall

1. Rules for dealing with the final pay are different and this doesn't apply.

2. If they gave permission in writing (as alleged by the firm) then these deductions can just be taken as they have received permission. They would do well to insist this written permission is produced.

3. This definitely seems unfair, however, what they're allowed to deduct will depend specifically on what is stated in their contract/written permission.

It seems odd that they don't remember reaching this agreement with the firm. Do they remember taking some extra holiday? What the employer has done, depending on the written agreement might well be legal although it seems like poor practice. Why a company would want staff to owe them money dating back to 2009 is beyond me. If they want to pursue this, they need to get hold of the agreement they signed in order to a) check it exists and they signed it and b) to see what terms they agreed to wrt to clawing back the money.

enkoda

Thanks for the reply amiehall.

I know if it were me I'd be demanding to see that letter, but my pals think it's a lost cause and don't want any more to do with the company.

WestonDave

The rate of pay thing is interesting and you could argue it either way. Obviously you would like to see it as unpaid leave back in 2009 which should be deducted from pay then but as it wasn't deducted at that rate now. The alternative is that it was an advance of holiday in 2009 which carried forward so that now when it comes time to leave that holiday deduction means you have a deficit for holiday now hence the deduction of the relevant days or hours from final pay at todays rate. There isn't really a right or wrong - one way of seeing it benefits one party, the other suits the company. As the company loaned them "holiday hours" if anything the carry forward is the more appropriate option and so on that basis what they've done is right. Certainly where staff are carrying forward holiday each year and then leave early in the new holiday year, you wouldn't expect an employer to go back and work out when it first arose and pay that holiday on departure at a historic rate - it would be X days at todays pay. The converse applies to an old holiday deficit which is what this is.