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Dispute with employer for unlawful deductions of wages and breach of contract

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  • Dispute with employer for unlawful deductions of wages and breach of contract

    Hi, hope some of you guys can provide helpful advice here like I have received in the past.

    Basically I have just finished an interim manager role for a large Facilitiy Service provider and I am in dispute about what I have been paid regarding holiday pay calculations and the basis on which the company have calculated my basic daily rate. I am / was salaried £35000 per year, working a contracted 40 hours per week as stated in my contract of employment, which was worked over 5 days, though this part was not stated in my contract though was standard practice for the site I worked at. I was also entitled under my contract to 5.6 weeks annual leave pro rata as it was an interim role.

    According to my contract of employment my holiday pay is paid at my basic rate of pay for all approved holidays taken within my entitlement, including public holidays. Therefore, this confirms that my holiday pay rate is the same as my basic rate of pay, which is my daily rate, yes?

    And, at the termination of my employment with the company, any outstanding holiday entitlement wil be paid on the following basis: [1/260th] of my basic annual salary for each day of leave due to me to make up my entitlement i.e. 52 weeks / 5 days per week,

    Therefore, I calculate my holiday pay rate / or basic rate of pay as £35000 / 260 = £134.62. This is correct? Or £35000 / 52 / 5 = £134.62. Either way is the same.

    My employer has calculated my daily rate @ £35000 / 365 = £95.89?? Surely this is incorrect and in breach of my contract of employment as I am not contracted to work 365 days of the year. All online salary calculators come up with the same figures as my calculations.

    Despite trying to resolve the matter amicably I had to resort to formal grievance procedures. In the outcome letter the company have not upheld my grievance stating "having reviewed this matter I have been able to confirm with the company's payroll provider that the method of calculation used in the calculation of a day's pay was calculated in a manner which was consistent with the method used across the business. I also undertsand that their could be huge implications for the business if the way they have been calculated daily pay rates is proved to be unlawful / illegal and in breach of contract.

    The company have not explained in the outcome letter that their calculation is correct. legal or lawful, just that it is consistent across the business. Neither have they explained why they dispute the way in which my calculations are made, in accorsance with my contract of employment.

    I am not in a Union and am struggling to source free law emlpyment advice and am considering to go down the small claims court rather than Employment Tribunal mainly due to costs and the necessity to have a solicitor to advise during a tribunal.

    Any advice on this would be greatly appreciated!
    Tags: None

  • #2
    Re: Dispute with employer for unlawful deductions of wages and breach of contract

    Is this any help? Being government it should carry some weight.

    Comment


    • #3
      Re: Dispute with employer for unlawful deductions of wages and breach of contract

      Thanks ostell but I already know my holiday entitlement. It is clarification on the correct calculations of pay that I really need and whether my calculations are interpreted correctly in accordance with my contract of employment. I have lloked online and cannot find any interpretation that is similar to the way in which the company has calculated my basic daily rate / holiday pay rate.

      Comment


      • #4
        Re: Dispute with employer for unlawful deductions of wages and breach of contract

        If you point your employer to the government page about calculating holiday pay it might make them realize that they have got it wrong. Without doing the calculation I agree with you. Putting it another way you have Saturday and Sunday (or whatever) off each week without affecting your salary.

        I think this is going to end up at small claims. It's amazing how many employers do not seem to understand holiday pay requirements, or even any requirements at all.

        Comment


        • #5
          Re: Dispute with employer for unlawful deductions of wages and breach of contract

          Hi 0011738

          You also say that the terms & calculations are stipulated in your contract of employment?

          They'll look a bit silly in court if they try to argue differently.

          Btw, did your role entitle you to commission at all?

          If so, http://www.personneltoday.com/hr/hol...ay-commission/
          CAVEAT LECTOR

          This is only my opinion - "Opinions are made to be changed --or how is truth to be got at?" (Byron)

          You and I do not see things as they are. We see things as we are.
          Cohen, Herb


          There is danger when a man throws his tongue into high gear before he
          gets his brain a-going.
          Phelps, C. C.


          "They couldn't hit an elephant at this distance!"
          The last words of John Sedgwick

          Comment


          • #6
            Re: Dispute with employer for unlawful deductions of wages and breach of contract

            Hi,

            I have worked it out exactly the same as you.

            Your gross wage based on £35,000 per annum is £134.62 per day - Net (minus tax and NI) this should equate to roughly around £103.72 per day

            Comment


            • #7
              Re: Dispute with employer for unlawful deductions of wages and breach of contract

              Cheers Yoshi1738 for the response but is our interpretation of my contract of employment correct? every online salary calculator comes out the same (or there abouts within pence) but the way the company calculates my basic daily pay rate is significantly less i.e. £35000 / 365 = £95.89

              And although I am entitled to 5.6 weeks holiday pro rata the company's holiday pay calculation is £35000 / 365 days X 7 days / 5 days X 1.67 days (accrual rate) which is incorrect as it should be 2.3 days. although the actual calculation other than the acrual rate is there or there abouts, I still disagree with the calculation as it is not as per my contract of employment. Although we are talking about pence here, it is the principle of law that i want upheld

              - - - Updated - - -

              Originally posted by charitynjw View Post
              Hi 0011738

              You also say that the terms & calculations are stipulated in your contract of employment?

              They'll look a bit silly in court if they try to argue differently.

              Btw, did your role entitle you to commission at all?

              If so, http://www.personneltoday.com/hr/hol...ay-commission/
              Hi Charity, thanks but no commission involved.

              Comment


              • #8
                Re: Dispute with employer for unlawful deductions of wages and breach of contract

                Originally posted by 0011728 View Post
                I am not in a Union and am struggling to source free law emlpyment advice and am considering to go down the small claims court rather than Employment Tribunal mainly due to costs and the necessity to have a solicitor to advise during a tribunal.

                Any advice on this would be greatly appreciated!
                There are sources of pro bono employment advice, such as law clinics, many are run by academic institutions. https://www.lawworks.org.uk/solicito...o-bono-clinics

                There is no need to have a solicitor representing you at the employment tribunal, in fact, most claimants represent themselves. You need to consider the sums you are claiming and compare the fees to file a claim with the ET vs the county court. Also bear in mind county court judges hear all types of claims while ET judges are employment specialists.

                Comment


                • #9
                  Re: Dispute with employer for unlawful deductions of wages and breach of contract

                  Originally posted by freshfield View Post
                  There are sources of pro bono employment advice, such as law clinics, many are run by academic institutions. https://www.lawworks.org.uk/solicito...o-bono-clinics

                  There is no need to have a solicitor representing you at the employment tribunal, in fact, most claimants represent themselves. You need to consider the sums you are claiming and compare the fees to file a claim with the ET vs the county court. Also bear in mind county court judges hear all types of claims while ET judges are employment specialists.
                  Many thanks freshfield, much appreciated. Think I would most likely be looking at county court due to the expenses involved and the fact that if I won I would be able to claim these back

                  Comment


                  • #10
                    Re: Dispute with employer for unlawful deductions of wages and breach of contract

                    Hi all, think I have found the info to support my appeal. The Appeal Court ruled last year that the correct calculation to be used to work out a days pay for a salary work is 1/260. Although my contract does not specifically state the days I work, only the hours i.e. 40 hours per week, the site that I worked at and team I worked with only work Monday to Friday, which is exactly what I did. And my contract of employment was specific to work at that site.

                    Info can be found here: https://app.croner.co.uk/feature-art...ated?product=3

                    Comment

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