Uncertain salary [help?!]

avidityrar

Ok so the situation is someone is leaving their job, half way through the calendar month (today) but their pay day is on the 15th of every month.

They have worked up until today, with full basic pay, but due to leaving are being told they have to repay some money for overtaken holiday pay (which is fine, thats accepted) but also that due to late leaving the payment will be for a full month and so has to repay much of the salary paid to her.

Issue:
Am confused about having to pay half of the month back, because the payslip says that she is paid for the month of November but surely that would mean the company was paying 2 weeks in lieu rather than in arrears (as I have always experienced myself).

Calculations:
Average monthly salary - £1100
Overtaken holiday pay - £200
Total final payment - £1080
Amount to be repaid to company - £700

(Please note all numbers are rounded to nearest £10)

Can someone please explain to me, I have done payroll for a small bookmakers before and never come across paying in advance of the weeks worked so am lost!!

Thanks in advance!

A.

Savvy_Sue

the person concerned can ask their employer for a full breakdown of the repayment being requested, but can they cast their mind back to their first payment? Or their offer letter / terms and conditions?

Because it is not uncommon for salary payments to be made mid-month to cover the whole month, and in that situation the company is paying half in arrears and half in advance.

Not quite as extreme, but we pay on (or before) 25th for the whole month, so up to a week is in advance.

marliepanda

If she is paid for all of November on the 15th of Nov then she owes it. My payroll deadline is 20days before payday. If someone gives notice to leave in that period it’s too late to change payroll and there’s an overpayment. It doesn’t often happen as most are on 1/2 months notice, but some do occasionally leave without notice!!

avidityrar

Thank you both for your response. I figured the only way it is possible is if half is paid in advance I just had never come across this big an amount in advance, one week I had seen but half of the month seems ridiculous.

Thanks again!

Kynthia

avidityrar wrote: »

Thank you both for your response. I figured the only way it is possible is if half is paid in advance I just had never come across this big an amount in advance, one week I had seen but half of the month seems ridiculous.

Thanks again!

It's not uncommon. I've worked in places that pay for the whole month on the 15th, 25th, last working day, last Friday of the month, etc.

avidityrar

@Kynthia - Well I am by no means a payroll expert, just hadn't come across it in almost 2 decades of employment. Almost every employment contract I've read is "X will be paid on the [insert pay date] every month in arrears", however it is good to learn new things. Thank you for the response too, all is helpful when I am unsure!

Genuineguy03

I've come across someone that was paid every two weeks. Which was a first. And no, they weren't on benefits. It was just how there employer did things. Think it was because he'd go stay at his holiday home every other weekend.

nimbo

It’s common for local authorities where I live as well as some schools.

My last two jobs one for a local authority and one for an organisation that works for the local authority does this.

Didn’t they give notice though? My last job I didn’t get a full months wage - I left on the 14th but they’d already adjusted for this...

My next job the first pay was bigger than usual as I had missed the cut of for being added to the first months payroll so got an extra 10 day money.

avidityrar

Thank you all! It was resolved, there were discrepancies but not as big as I'd figured.