exceeded holiday entitlement now leave the company

Madeddie

Hi I have just left a company and have been deduced salary as I exceeded my holiday entitlement by 3 days. I worked for the company for 6 months I was on 30 hour a week contract @ minimum wage 6.5 hrs a day . A few weeks before I left I was put on a 40 hour a week contract @ minimum wage, However, I have been deducted 3 days holiday as if I had been working 40 hours when infact I received holiday pay for 3 days @ 6.5 hrs , so the company has gained .Its my final salary so the loss of 3 days pay at 8 hrs a day is quite a hit for me.  Are they are able to do this.  I have queried it with payroll but not got anywhere, but it is in my contract of employment that they can make deductions. 

TELLIT01

They can certainly make deductions to recover an overpayment of holiday pay, but that deduction needs to be accurate.  It's entirely possible that the IT system for payroll can't do it automatically due to the change in working hours, but in that instance either payroll or HR need to make a manual adjustment.

Madeddie

I have gone back to payroll re the 3 days I went over and they have replied ' , these days are calculated at your salary on leaving'.

I have also queried my first pay check  because my figures don't match theirs. 

I started 15.12. and worked 13 days in December. 

My monthly basic was £1259.05., annual £15,108.60

To calculate my December salary payroll used the following:

Dec Salary 1228.07 divided by 31 days x 17 days from 15/12 to 31/12 = £673.46 

I have calculated :

£15108/260 = £58.11 x 13 days = £755.43. 
13 days x 6.5 hrs @ 8.94 hr =£755.43


I believe I have been underpaid £81.97??? But payroll is disputing this.  I would appreciate some advice. 

briskbeats

Employers can deduct money from your final pay. For an easy example, you have 24 days annual leave per year. So two days per month. Find out when the employer’s annual leave calendar starts, usually the same time as the financial year. If you leave 8 months into the year and used 17 days annual leave, that’s a day more than (8x2) you will lose a day pay in final pay

Madeddie

Thanks I understand , but I received annual pay I was paid 3 days at 6.5 hrs I was deducted 3 days at 8hrs!
Also I started working  15.12 @6.5 hrs a day minimum wage . I received £673.46 , which is less than the minimum wage and illegal . 

Savvy_Sue

Madeddie said:

I have also queried my first pay check  because my figures don't match theirs. 

I started 15.12. and worked 13 days in December. 

My monthly basic was £1259.05., annual £15,108.60

To calculate my December salary payroll used the following:

Dec Salary 1228.07 divided by 31 days x 17 days from 15/12 to 31/12 = £673.46 

I have calculated :

£15108/260 = £58.11 x 13 days = £755.43. 
13 days x 6.5 hrs @ 8.94 hr =£755.43


I believe I have been underpaid £81.97??? But payroll is disputing this.  I would appreciate some advice. 

We calculate pro rata salaries this way too: divide monthly pay by number of days in month, then multiply by the number of days worked / not worked (I always do it both ways to make sure the worked and not worked figures add up to a normal month). 

You could calculate the number of hours actually worked last December, and divide the salary you received by that. If the answer is lower than minimum wage per hour you could use that as an argument, and report it to HMRC's low pay unit. There's some information here. https://www.livingwage.org.uk/faqs. I should point out that I believe there's been an allowance made so that employers can calculate payment for the year and pay it in equal instalments, rather than having to ensure that every single month's payments exceeded NMW, so that one may no longer work for you. 

General_Grant

To start with you need to work out your holiday entitlement in hours - pro rata to the time you were on the different contracted hours.

Madeddie

I have been thinking the deduction in respect of holiday pay, also meant in my final salary I earnt less than minimum wage. 

General_Grant

Madeddie said:

I have been thinking the deduction in respect of holiday pay, also meant in my final salary I earnt less than minimum wage. 

A deduction in respect of holidays taken in excess of entitlement does not count in calculating whether you were paid national minimum/living wage.  Look on that deduction as a debt you owe to your employer - but you need to establish what it should be.

Savesmartsunday

They need to do average hours for 12 weeks or something 

getmore4less

Savesmartsunday said:

They need to do average hours for 12 weeks or something 

Holiday pay changed to average 52 weeks.