Working you notice/ withholding wages

[Bomber99]

Hi all
my son-in law had a falling out with his manager and decided to hand in his notice, giving one week as per his contract. On the Tuesday the manager asked if he intended to leave the firm. My son-in-law said yes and that Friday would be his last shift. The manager then became abusive and told him to get his tools and leave the premises. On the day he was due to get paid nothing arrived into his account. They told him they had withheld his due wages to recoup some of the money he owed them. This was money loaned to him to buy a car. They are also refusing to pay him the weeks notice which they would not let him work.
so the question is can they withhold his wages and should they pay him the weeks notice they refused to let him work

[ULA]

Under what terms was the loan provided to him? In most situations a loan is provided with a document created that sets out the repayment terms via deduction from salary until the loan is repaid and that in the event of the person leaving before the loan has been repaid then what will happen.

In terms of the notice period then if your son-in-law has given them his contractual notice and they do not want him to work it then he should be paid in lieu.

[Bomber99]

Thank you ula
there was no contract for the loan no signing etc just word of mouth.
they have now agreed to pay week in lieu but kept week in hand money and the week in lieu money to pay off loan.
can they legally do that ??

[dslippy]

They can only do that if the employment contract clearly allows them to do so. Look for unlawful deductions from wages.
If your son succeeded, he would still owe them the money. Is the loan bigger.
His claim would be in the Employment tribunal.

[ULA]

There was no written agreement/contract between your son-in-law and his employer specifically for the loan and deductions from salary to repay this so the only other thing I would check before going down the unlawful deductions from wages route is, whether in the employment contract your son-in-law had with the company, there was any clause that related to Deductions from Wages or something similar, if there was then read it carefully to see what this covers.

This is a pretty standard clause in most contracts and allows for the company to deduct from salary/wages any overpayment made and/or monies owed to the employer by the employer and usually covers things like any excess holiday, outstanding loans, advances and the cost of repairing any damage or loss to the employer’s property caused by the employee.

If there was such a clause then his employer is entitled, under this, to recover what is outstanding on the loan. If this does not cover what is owed, then the employer should be arrange a repayment schedule post employment termination.