Overpaid holidays deducted at living wage rate when originally paid at minimum wage?

mrsmulac

Good Evening,


Not sure if this is the correct board but kind responses would be gratefully received.


My partner has been offered a new job and is therefore leaving his current employer.


He has been informed that he has taken more holidays than he is entitled to (because of the shortened January - May period he is working because of his new job). He is required to pay back his holiday pay for this difference. We believe this to be standard practice.


However, his current employer has today informed him that although he was paid at minimum wage for this time worked and holiday pay, he will be required to pay it back at the living wage. All holidays were taken during the national minimum wage period.


Can the employer do this? Is it legal/ contractually sound to deduct the wages at a higher rate than they were originally paid?


Thanks in advance!

marcarm

I'm not sure of the answer, but how many hours are we talking?

Example 40 hours at nmw (£6.70?) compared to £7.20 work out to be £20, so not a massive sum of money, but obviously it is better in your pocket than in theirs.

duchy

I'd be giving ACAS a call - it sounds wrong.

mrsmulac

Thanks for your responses. It is for 37.5 hours. It is a really small sum of money but seemed unfair on principal!

burnoutbabe

is the living wage his current wage and national minimum wage his old wage?

It would work like this at my place, the adustment for holidays over or undertaken is done at current salary for that month.

As you could never work out exactly which months the over/under usage occured in without some very detailed calculations.

getmore4less

Accrued holiday is paid at the rate at the time it is taken not at the time it accrues.

What is effectively happening is you are working an unpaid day.

Current rate applies.

Check they have the prorata calculation correct for the number of days due.