Can my employer take my full salary??

LizzieH1984

Hi,
I went off sick in November from work as I have a blood clot in each lung and a DVT. I recieved full pay Nov/ Dec which is fine because i thought i was on 3 months CSP.
My manager advised me last week that my sick pay actually ran out on Nov 24th, so I owe the company ££££s. The company had only just processed my sickness last week which is how they know. I've been advised verbally that my salary this month is £0 and I am supposed to be due back at work next week!? That also means any SSP I've been paid has been swallowed up by ££ owed. I won't even be able to get there let alone feed myself or pay my bills! How can it be right they can leave me with absolutely nothing? I am not disputing the amount, I am disputing being left with nothing - Financial hardship is looming.

Exodi

If the amount or reasons for deduction aren't disputed, yes, employers are completely within their rights to claim back over-payments (as confirmed by ACAS). They should however, agree with you how the repayment will be made and I'd wager if you mentioned that deducting your whole salary would leave you in financial hardship, would agree to deduct it over X months.

jonnygee2

Your employer is rolling the dice slightly on this one. Although there is provision under law to reclaim overpaid payments, it's normal to seek agreement with the employee first. Simply deducting the entire amount from one payroll could be considered constructive dismissal and lead to successful claims.

Does your contract say anything about recovering over-payments? Many do, and if your contract has such a clause it may change the weight a bit. But your employer still has to act reasonably. There are also examples of where over payments have not been reclaimable because the employee reasonably thought they were entitled to the money - another reason it's common to reach agreement first. In your case, this could easily be the case, but again its complicated.

Still, obviously to claim constructive dismissal you have to resign first which you probably don't want to do, plus you'd have to have worked there more than 2 years to make a claim. And any formal grievance while still employed can put your relationship with your employer in trouble.

Basically, the legal situation is murky. But, I'd start with negotiation first - explain you don't have savings and try to set up a repayment plan with them instead. If that doesn't work, independent advice from an employment lawyer (look for free consultations!) or ACAS might be advisable.