We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Reductions from my Final Pay Check.. any advise?

Hi everybody,

I'm a new member here, although I've come across the forum quite a few times with some very helpful tips and advice!

I have a problem at the moment which I'm hoping somebody on here will be able to better advise me on. Although no strictly related to redundancy, it is to do with leaving a job, I hope this is the right place for it?

I worked for an agency in Surrey for six-seven months of last year, and handed in my notice to them on the 28th November. My contract stipulated a month's notice period so that's what I gave them, and I still had four day's worth of holiday entitlement remaining.. it's a little complicated so bear with me on this one.

When I handed in my resignation I was firstly told that my final day at work, taking into account my four day's holiday entitlement, would be the 22nd of December (the 27th and 28th were a weekend last year). When I pointed out that this wasn't strictly correct because the 25th and the 26th December (the Thursday and Friday) were already bank holidays, they agreed with me and instead told me that my final day would then be Thursday the 18th December.

The way that the wages work at the company were that pay was put in our bank accounts on the final Thursday of the month, and equated for the entirety of that month (so on most occasions you would receive pay before the month you were being paid for was completed).

I was a little surprised to see that when my final paycheque came through, they had deducted for a week's worth of earnings, which wasn't at all what I was expecting since as far as I was aware, I was still an employee through the four days after I left the office (holiday entitlement), as well as the two bank holidays that lead up to the end of my notice period (the 28th December: a month after I had handed in my resignation).

I should say at this point that the company does not have a HR department as such, and during my time with them I had experienced some problems with their payroll system, most predominantly being a pay rise I was promised and didn't come through for another seven weeks, and even then only because I badgered them about it.

When my final paycheque came through significantly less than I was expecting I dropped them an email. Because it was the Christmas period I wasn't expecting a response straight away but I still hadn't heard anything from them at the beginning of this week (two weeks later) so I sent another couple of emails before finally getting a response from them this evening.

They are claiming that because I left on the 18th of December, and I carried four day's holiday entitlement, they see my effective termination date as the 24th December (ie: Friday 19th, Monday 22nd, Tuesday 23rd and Wednesday 24th)
, and made deuctions from my final paycheque to reflect this. Whereas the only reason I left on the 18th was because two days in the final week owere bank holidays and therefore should still be paid for. If it had been any other week (ie: without bank holidays), then I woudl have left on the Monday and continued receiving payment until the Friday.

Can anybody on here shed any better light on exactly where I stand on this? I have accounts to fill in for the tax man by the end of the month and at the moment it feels like I've been short changed by a good couple of hundred pounds..!

Thank you anybody who can shed some light on this situation..!

Comments

  • Naranji
    Naranji Posts: 19 Forumite
    I am not sure for definate here, it is only my opinion but I would say that as your last working day was the 18th, then you took your 4 days paid holiday they are right in saying that you left before the Christmas Holidays, as after the 24th December you wre effectively no longer on their Payroll....

    Like I say that is purely my opinion, not saying it is correct.

    Naran x
  • Hi Naran,

    Thanks for your response. What's confusing me then, is the bank holidays. Since my notice period was a month, I would have "officially" left on the 28th December, or rather the Friday beforehand (the 26th), would you agree with that?

    However, it is confused by the bank holidays at the very very end of my notice period. Had they not been there, I would have been required to work until the 22nd December (and then take my four day's holiday entitlement), The bank holidays are effectively still part of my notice period aren't they?
  • Naranji
    Naranji Posts: 19 Forumite
    Hi, you would have thought they would be wouldn't you...but unfortunately I think your Employer will bend this to suit them and say that because your holiday ran out on the 24th that is when your contract ended...It sucks don't it :rolleyes:

    Perhaps you should have a word with the CAB or ACAS, they may be able to advise and if your Firm is pulling a fast one you will have solid advice to go back at them with.

    Good luck and keep us posted as this is an interesting one...

    Naran :beer:
  • Your employer owes you for those two extra days.

    The most important date here is your final date of employment within the company. When you first gave in your one month's notice, on 28th November, that would mean that your final date of employment would be 27th December, the Saturday (regardless of the days of the week that you normally work - that is the last date upon which you would have been an employee).

    I am assuming here that your hours are Monday to Friday, you had 4 days accrued but unused days' holiday and your contract of employment provides that you are paid bank holidays on top of your normal annual leave entitlement and that therefore the 25th and 26th December were holiday on top of your annual leave entitlement.

    Although your last day physically in the office was Thursday 18th December, you were still an employee up until Saturday 27th December, as Friday 19th, Monday 22nd, Tuesday 23rd and Wednesday 24th were booked off as annual leave, and Thursday 25th and Friday 26th were bank holidays.

    Therefore, you should have been paid for those extra two days. You can take your employer to the small claims court for the amount they owe you. I would start with a calmly worded letter and a deadline of one week to respond. If they fail to respond, I would commence proceedings against them, they will soon respond.

    http://www.hmcourts-service.gov.uk/infoabout/claims/index.htm

    I don't know where the payroll dept got the date of 22nd from as your last day, but if you had worked up to and including the Monday, not only would they have had to pay you for 25th and 26th, but they would have also had to pay to you the equivalent of two days annual leave.

    Hope that helps. Good luck!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.