Underpaid at work for the last 3 years!

Alex.n995

Hi All,

New to the forum so not sure if anything like this has been posted, I did have a look through but couldn’t find the answer to my main question....

Earlier this week I had a hunch that I wasn’t being paid my correct hourly rate that had been agreed and was in my contract. I checked over my payslips for the last 3 years and worked out I had been getting 40p less per hour!!! In total this amounted to just under £2k that I had not been paid. I took all my payslips, evidence and calculations to my boss and explained the situation. He agreed I had been underpaid but said he would only be able to reimburse me for the last 2 months and then make sure my pay was changed to be correct going forward.

So my question is am I entitled to the full amount of backpay that they owe me? Or can they just give me 2 months backpay and be done with it?


Thanks!

Alex

tehone

Does your original contract specify your hourly rate? If so then yes you're entitled to all your backpay (it will however all be taxed in this tax year).

If you are in a union they will be able to support your claim

ViolaLass

What reason did your boss give for not wanting to pay all the back pay? Did he mean that he can't pay it all immediately or just wouldn't pay it all full stop?

TELLIT01

I can't see any valid reason for not paying you everything you are owed, although you might want to accept it over a few months if it's a small business and a lump like that might affect cashflow and ultimately your job.
If you haven't put the request in writing you need to do so, along with the calculation. If the employer still refuses to pay you should be looking for another job and taking him to the small claims court to recover it.

Alex.n995

Hi,

He didn’t give me a reason as to why, it was quite a rushed conversation as he had a meeting to attend. The company I work for is a multinational company and a big player in the industry. I do know the site I work at is currently experiencing lots of financial issues, but we are 1 of many many sites across the world so not really sure that would be the reason as to why they can’t repay. When he said they couldn’t pay me in full I just assumed it might have been some sort of law.

TELLIT01

Alex.n995 wrote: »

Hi,

He didn’t give me a reason as to why, it was quite a rushed conversation as he had a meeting to attend. The company I work for is a multinational company and a big player in the industry. I do know the site I work at is currently experiencing lots of financial issues, but we are 1 of many many sites across the world so not really sure that would be the reason as to why they can’t repay. When he said they couldn’t pay me in full I just assumed it might have been some sort of law.

As it's a large organisation I would put the issue in writing to HR. It's not something that a line manager would be able to sort directly even if they were supportive, and your manager doesn't seem to be.


I would word the letter in such a way that it is clear to HR, and therefore the employer, that you have recently discovered that you have been paid below NMW ever since you joined the company, and that you expect that error, and the financial shortfall, to be corrected immediately.


With a small company it would be possible, although still not acceptable, that they didn't realise. There is absolutely no excuse for a multi-national to do it.

garth549

You'd have a strong case against them. If they'd overpaid you for 3 years they'd almost certainly want it all back and not just the last 2 months!

nalimcc

Does it specify anything about over or underpayment in your contract/company handbook? That's the only way I can see them arguing they only have to pay you two months.

As others have said, if it was the opposite they'd want it all back. If you have a written contract stating your hourly rate then they have no case. I'd keep a note of what was said in your meeting too.

TELLIT01

nalimcc wrote: »

Does it specify anything about over or underpayment in your contract/company handbook? That's the only way I can see them arguing they only have to pay you two months.

Irrespective of what is in the handbook, it is illegal to pay anybody over 25 below the NMW in the vast majority of situations.

74jax

TELLIT01 wrote: »

Irrespective of what is in the handbook, it is illegal to pay anybody over 25 below the NMW in the vast majority of situations.

We don't know it takes him below nmw though.