Is this right? Can this be done?

I have worked for a company for 1 year and 4 months, holiday runs from January to December, 20 days available plus bank holidays.

I used the 20 days for a holiday in March 2020, assuming that I would be working for the rest of 2020. However, I was put on furlough in April and I was made redundant in July due to covid and received a letter from the company today advising that I owe them money for using all of my holiday and not working a full year. They are also threatening to take me to court and pay all the legal fees if I do not pay this money within 7 days. They have also threatened that if I do not pay the money within time, the balance will double.

An email was sent to all employees advising of redundancy and of the termination of our contracts on July 31st and within this email it states that we will be paid our last salary plus any outstanding holiday that has not been taken, yet I am being asked to pay back the holiday that I took within the year. 

Does the company have the right to do this as I was made redundant and did not make the choice to leave? Do I need to pay this money? Where do I stand?
Any advice welcome. Thank you

Comments

  • AskAsk
    AskAsk Posts: 2,394
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    i think you will need to pay them the holiday pay back but it is unreasonable that they ask you to pay within 7 days.  they are behaving in a very aggressive way. 

    so they paid you monies owed last month and now it has come to light that you owe them money?
  • Barny1979
    Barny1979 Posts: 7,921
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    The holiday you owe them is it calculated from April or July?
  • Xbigman
    Xbigman Posts: 3,879
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    If your holiday is Jan - Dec as you state then you've worked 7 months out of 12 and are entitled to 11.66 days PAID holiday. 
    If you've taken and been paid for 20 days then you do indeed owe them the balance. 
    Its annoying that they got your last wages wrong, and more annoying that they've come on strong about their mistake but you do owe the money. 
    Make sure the figures you have are the net amount owing and not your gross wages. I'd start by asking for a full breakdown of your final pay and I'd send it recorded delivery.


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  • getmore4less
    getmore4less Posts: 46,882
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    Bee2020 said:
    I have worked for a company for 1 year and 4 months, holiday runs from January to December, 20 days available plus bank holidays.

    I used the 20 days for a holiday in March 2020, assuming that I would be working for the rest of 2020. However, I was put on furlough in April and I was made redundant in July due to covid and received a letter from the company today advising that I owe them money for using all of my holiday and not working a full year. They are also threatening to take me to court and pay all the legal fees if I do not pay this money within 7 days. They have also threatened that if I do not pay the money within time, the balance will double.

    An email was sent to all employees advising of redundancy and of the termination of our contracts on July 31st and within this email it states that we will be paid our last salary plus any outstanding holiday that has not been taken, yet I am being asked to pay back the holiday that I took within the year. 

    Does the company have the right to do this as I was made redundant and did not make the choice to leave? Do I need to pay this money? Where do I stand?
    Any advice welcome. Thank you

    This is covered by relevant legislation
    https://www.legislation.gov.uk/uksi/1998/1833/regulation/14

    (4) A relevant agreement may provide that, where the proportion of leave taken by the worker exceeds the proportion of the leave year which has expired, he shall compensate his employer, whether by a payment, by undertaking additional work or otherwise.

    Check your contract if you cannot find a relevant clause ask them where it is as and remind them of the WTR regulations that covers holiday payments and the need for a clause to reclaim any overpayment of holidays that they will need to produce if they want to take it to court





  • Comms69
    Comms69 Posts: 14,229
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    Presumably if you had used no holiday, you'd expect the company to pay you the balance.....
  • getmore4less
    getmore4less Posts: 46,882
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    Comms69 said:
    Presumably if you had used no holiday, you'd expect the company to pay you the balance.....

    The legislation covers that as well.

    Employee gets a statutory right to get the unused holiday paid based on a prorata for the part of the holiday year the employee worked.

    Employer must have a clause in the contract to reclaim overused holiday..
  • Comms69
    Comms69 Posts: 14,229
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    Comms69 said:
    Presumably if you had used no holiday, you'd expect the company to pay you the balance.....

    The legislation covers that as well.

    Employee gets a statutory right to get the unused holiday paid based on a prorata for the part of the holiday year the employee worked.

    Employer must have a clause in the contract to reclaim overused holiday..
    Oh no i know, i just mean the OP would be complaining if they refused to pay out his accrued leave. 
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