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Unlawful deduction of wages

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  • Unlawful deduction of wages

    In January my employer offered all employees in a similar role a 6.2% pay rise. In my particular case this was done by an Area Manager via a Skype Meeting with most of my colleagues from my area. At the end of January we received the rise backdated to 1st January 2020. On Monday 24th February I received an email to my personal email address advising that there had been an 'administration error' and that I should not have received this increase and only an increase of 1.5% and they are going to recover the overpayment from February's salary.
    I have spoken to ACAS and responded to my Director of Operations stating that I had accepted the raise in good faith and that I did not consent to them removing the overpayment from my salary.
    I received an email from the DO on Friday 28th February advising me that under the terms of my contract they could recover overpayments and that my 1.5% increase would take my salary up to £8.72 per hour (heady heights!). However, this will only bring me into line with the National Minimum Wage increase on 1 April 2020 so is hardly a rise.
    My colleague, who does the same job, but does not have accommodation as part of his role, receives the same annualised salary but only works 30 hours a week instead of 35 so has a better hourly rate, has been given a 2.5% rise.
    The reduction in my salary was £60.73 which means that I actually received £20 less in my salary than I did in December's (pre pay rise). It also meant that I was only paid £7.77 per hour, considerably less than the minimum wage.
    My questions:-
    1. My employer has said that we are not allowed to discuss our salaries on Yammer (our intranet) but as most of us are lone workers it is the only way we can communicate with each other.* I believe that we are allowed to discuss salaries if we wish - as we are supposed to be on the same pay scale?
    2.Can they recover the overpayment considering it was accepted in good faith and I have made changes to loan payments based on the increase?
    3. The employer just told us that they were taking the money, there was no discussion and no wish to seek agreement. I believe that this is in breach of their duty of mutual trust and confidence?
    4. Can I argue that our salary was increased by implied (oral) agreement and confirmed by the payment of the increase. And withholding of pay is a breach of contract and unlawful deduction of wages properly due and payable?
    5. Is it worth pursuing it further?
    6.*Do I need to submit a letter of grievance before I pursue this?

    My apologies for the long post. Needless to say, I have updated my CV and I'm looking for work!
    Tags: None

  • #2
    Unfortunately, it is not illegal to retract a pay rise, however they should have a good reason and communicate this to you.

    A deduction, if covered by the contract cannot normally reduce your pay below the national minimum wage even if you agree to it, except if the deduction is for a number of reasons, one of which is repayment of an accidental overpayment of wages. This reason is the one I would assume that your employer is relying on.

    Given the above you may still feel aggrieved at how the company has handled the situation in which case you would have to raise a grievance.
    If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

    I do my best to provide good practical advice, however I do so without liability.
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    • #3
      Thank you. I will be raising a grievance, I just wanted to know if my arguments were on the right lines:

      Comment


      • #4
        Can you post up a draft of your grievance so that I can see what your are proposing to send to your employer.*
        If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

        I do my best to provide good practical advice, however I do so without liability.
        If you have any doubts then do please seek professional legal advice.


        You can’t always stop the waves but you can learn to surf.

        You are braver than you believe, smarter than you think and stronger than you seem.



        If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

        Comment

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