Holding back monies due

[Ladidi]

Hi Everyone,

I have a friend who was employed by a company and was paid a salary as well bonuses for work done.

He worked in the admin dept and his job involved dealing with all paperwork re any sales made and making sure contracts were completed correctly and all necessary paper work completed was filed and sent to head office etc.

Anyway as a bonus for this work he was given £20 per deal completed as well as his salary. However he left the company and was owed £420 at that point for deals completed and work already done, but the company stated they are allowed to withhold this for a period fo 90 days and would issue this after the period had ended and at their discretion.

Well that period is now up, and he wants to send a strongly worded but polite in the same respect to get the monies owed. Does anyone know of anything legal he can quote in order to obtain this?

Thanks

Ladidi

[Amethyst]

Re: Holding back monies due

I assume the 90 days was to ensure the completed deals actually completed.

Has he asked for the money, not strongly, already and been refused?

[Ladidi]

Re: Holding back monies due

Hi Ame

I hope you had a merry christmas

The 90 days will be up on 1st January. He has not asked for it yet, but considering all the hassel he has had since he left including getting his P45 and final salary he knows he is going to end up with something being thrown at him as their way of holding out a bit longer.

What he wants to do, is email the boss with a nice and polite with a bit legal jargon thrown in about them not being able to withhold monies due if there is any such a regulation, if you know what I mean.

The money owed does not amount to much £420 plus a bit more. But considering the current climate every penny counts and he would like to get the company to pay up without any more fuss if possible.

[Amethyst]

Re: Holding back monies due

The terms should be within his contract of employment. This should cover the terms around the bonus payments and the witholding at the end of the employment.

xxxx

[Ladidi]

Re: Holding back monies due

I forgot to add the money owed was for deals already completed at the time of his leaving the company, the stated that the 90 days was in case of cancelelation etc, he stated that the deals had already compeleted and the money was cleared to be paid. But they still argued that this is still covered by the 90 days and will only be paid at their discretion and if they have reason to withhold from paying this they will and at the time they saw no reason for this to happen and would review this in 90 days time.
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The terms should be within his contract of employment. This should cover the terms around the bonus payments and the witholding at the end of the employment.

xxxx

He agrees he signed a contract of employment however, he was not given a copy for his records so he has nothing to refer to.

[Amethyst]

Re: Holding back monies due

whoops. thats rubbish to start with.

Section 1(2) of the Employment Rights Act (1996) states, that the main terms of the contract must be in writing and provided to the employee within eight weeks of the start of their employment. - Employment Rights Act 1996 (c. 18)

So theres one legally bit to use.

[Ladidi]

Re: Holding back monies due

Thanks Ame your a star

I will email it over to him and advise he send a polite email tp begin with informing the 90 days are up and see what response he gets from that and if it comes to no avail to send an email stating they have broken the employment laws by not providing a copy of his contract to him and to point out the areas of law which they have broken

[rosymaria]

Re: Holding back monies due

Interestingly, I believe I'm right in saying that withholding salary is one of the few grounds where you can take an employer to a tribunal without there being any minimum period of employment!

[Ladidi]

Re: Holding back monies due

Hi Rosy, So what your saying is that as the employer has withheld monies owed he has a right to take the employer to a tribunal?

Also I need to add this guys, I have spoken to him and he informs me that he was self employed for company on a sales role, signed a contract for this role and found it was not for him and the company offered him the admin role under PAYE scheme, however when he took up this role he did not sign a new contract of employment and none was offered and the contract he signed was back 13 months ago when he was a sales rep for the company.

He also informs me the 90 days period was in the contract for the sales role, but the boss states he is entitled to withhold bonuses due for 90 days for role he done in admin under PAYE.

P.S I dont know how much of a difference this makes, he just told me that companies main operating arm is abroad but he worked for them here on UK soil and was paid via the main company abroad into his UK bank account.

[Amethyst]

Re: Holding back monies due

Okay that would have been change in terms of his contract -

So that is 4(1) of the employment rights act. Don't think it was amended in the 2008 review. So should still have had the changes in a written statement. Especially going from self employed to employed.

Regarding the witholding salary - I'm not sure that bonus's would fall under that, unless they are contractual - which as he has no contract we don't know.

I would aks nicely - and if as you suspect - they try wheedle out of it then a DPA request for the contract of employment would be a plan.

[Ladidi]

Re: Holding back monies due

Thanks Ame,

I have noted everything said, as I previously said. I have advised to try the nice approach and see what happens and if they play funny beggars he can then play hard ball..

Will keep you updated as to what happens.

[Amethyst]

Re: Holding back monies due

thanks hun, no problem sorry can't be more help.

oh one more thing - the tribunal deadline with ACAS is 3 months. Wonder if thats got anything to do with why they chose 90 days

[Ladidi]

Re: Holding back monies due

You could be right there. Now that is something to think about. I guess what he could always says is oh you think your in the clear well your not I have case filed ready to go with ACAS, so you not out of woods, lol call their bluff.

I always thought you had 3 or 6 years in which you could file complaints against an employer re tribunal route.

Good to know I dont know everything, now considering his boss thinks the 90 days are up on 1st of Feb, but he has checked his dates and 90 days are up on 1st Jan, I reckon the boss is not going to have much of a leg to stand on seeing as he has it in writing that he would review on 1st Feb..lol Just gives him more time to decide what steps to take..lol

[orfoster]

Re: Holding back monies due

I wonder if this would come under Unauthorised Deduction in Wages. I'm a little rusty but believe this is debt with in Small Claims court and not ET? However I may be wrong.