Incorrect final pay from employer??

twc58

I worked for a major bank and retired on 5 March.
i only worked 2 days a week in my final years on a Monday and Tuesday and have been paid £108 for 14 hours work instead of £180. The difference is not a lot but it’s the principle that’s bugging me and if they are doing this to me then they are doing this to others and pocketing this money!!
I have challenged them on this and this is their explanation which does not make sense to me.
at the end of the day I worked 14 hours in March and should be paid for 14 hours.
this was their explanation:

In your case, you have an annual salary of £23,412.43 pro-rated to £9,364.97 to reflect your part time hours (0.4 FTE - 14 hours per week), therefore each month you are paid 1/12of this, which as you will see from your January and February payslips equates to £780.41 a month. 

When a colleague leaves part way through a month, we calculate the leaving payment based on the daily rate multiplied by the number of working days – for you, this was calculated as follows: £9364.97 / 52 weeks / 5 days = £36.02 x 3 working days which were the 1st, 4th and 5th March = £108.06, this is the standard calculation used for all leavers.

is this me being thick or do you agree that I should continue to challenge this?

thanks in anticipation for your thoughts.

sammyjammy

They can't divide it by 5 WDs if you only work 2, what they have paid you appears to be less than NMW as well given that you would have paid no tax/Ni on that payment

Kerreh

twc58 said:

I worked for a major bank and retired on 5 March.
i only worked 2 days a week in my final years on a Monday and Tuesday and have been paid £108 for 14 hours work instead of £180. The difference is not a lot but it’s the principle that’s bugging me and if they are doing this to me then they are doing this to others and pocketing this money!!
I have challenged them on this and this is their explanation which does not make sense to me.
at the end of the day I worked 14 hours in March and should be paid for 14 hours.
this was their explanation:

In your case, you have an annual salary of £23,412.43 pro-rated to £9,364.97 to reflect your part time hours (0.4 FTE - 14 hours per week), therefore each month you are paid 1/12of this, which as you will see from your January and February payslips equates to £780.41 a month. 

When a colleague leaves part way through a month, we calculate the leaving payment based on the daily rate multiplied by the number of working days – for you, this was calculated as follows: £9364.97 / 52 weeks / 5 days Why are they dividing it down to 5 days a week when your pro-rata salary (which they're using as the base figure) already accounts for this = £36.02 x 3 working days which were the 1st, 4th and 5th March 1st was a Friday yet you say you only worked Monday/Tuesday = £108.06, this is the standard calculation used for all leavers.

is this me being thick or do you agree that I should continue to challenge this? I'd challenge it

thanks in anticipation for your thoughts.

FWIW I've added comments in bold above

Using their format of calculation I'd get £9364.97 / 52 weeks / 2 days = £90.04 x 2 working days for Monday 4th and Tuesday 5th March so = £180.08

Marcon

sammyjammy said:

They can't divide it by 5 WDs if you only work 2, what they have paid you appears to be less than NMW as well given that you would have paid no tax/Ni on that payment

That's the bit which should really encourage them to reconsider. Also...any holiday pay which should have been included?

penners324

Their calculation is way off.

It's either your full salary £23,412 /52 /5 or £9364.95 / 52 / 2

Which are both a little over £90 per day

penners324

Email them those calculations. If they still refuse threaten to mention to hmrc you've been paid below nmw

twc58

Thanks for all your feedback.
pleased to know I’m not thick 😂.
i will be composing a suitably worded email to them over the weekend.

techwatcher

This story sounds awfully familiar - my wife had the same issue when she took early retirement from one of the big banks in 2020 (wonder if it's the same bank?).

My wife worked a single full day in her final month and her final salary was £39 - below Minimum Wage. 

They argued several times that the final payment was correct but their method of calculation only works out correctly for part-timers leaving al the end of a month. Leave mid-month and the leaver loses out. Presumably most don't notice the discrepancy.

We ended up making a formal complaint which involved writing a paper letter and sending via snail mail to HR at Head Office and the matter was resolved. If your email doesn't elicit a satisfactory response then ask about the current complaints process and submit a complaint. Hope you get this resolved.