Help With Final Pay

rich20

Good evening,

I'm looking for some clarification on whether I'm due final pay after leaving a company.

My contract states pay date 20th each month

Employment with company ended 30 March.

My understanding is that I am owed final pay (unpaid salary between last pay period and leaving date and any untaken annual leave).

See response from company "You were paid monthly on the 20th. Hence salary paid on march 20th covered entire march.".

Who is correct here please?

baser999

If what you're paid on 20th is the pay for that calendar month, then if you leave on 30th you'll not get anything else. However, if the payment on the 20th is for the month ending on that date you'll be due further payment form 20-30th. What does your contact say as regards pay day?

tizerbelle

Does your contract say a liitle bit more than "pay date 20th each month".

Usually for those paid monthly the contract will specify something like "Your basic salary is £XX,000 per year which will be payable monthly in arrears on the 20th of each calendar month" This means you would be paid for all of March (1st to 31st) on the 20th March.

But you need to go back to your contract to be sure, although is the company have already told you such, I expect they are correct and you aren't owed anything in relation to your pay - as for any untaken annual leave - that would depend on when the holiday year runs from (you'll only get a pro-rata amouunt not the full allowance), how many holidays you get for a full year and how many you have already taken.

rich20

My contract just says

"The salary shall be paid on the 20th day of each month, in instalments of 1/12 of the annual amount.*

For example my Feb pay slip contained overtime I worked in January, so surely this means I'm paid in arrears.

tizerbelle

In arrears does not mean what you think. You will be paid on the 20th of each month for that month. In arrears (when it comes to pay) means at or toward the end of the period you are being paid for - so 1-19th of month are in arrears (as you've already worked them) but rest of month is in advance. In-hand is where there is a gap/delay between the period you work and being paid for it - very rarely (if ever) used these days for monthly paid staff.

Your overtime being paid the following month is standard practice - payroll wouldn't know until the end of January how much overtime to pay you for January. Payday may be the 20th but they'll have to have payroll calculated and bank payments set up before then. So it is normal that claims for overtime/expenses are paid the month after they are incurred simply because you won't know everything you are claiming for in the month until the month is over.

Savvy_Sue

Exactly what tizerbelle said.

When you started work, if it was on 1st of the month, did you get a full month?