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Requesting annual leave to be re-imbursed after resigning

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  • Requesting annual leave to be re-imbursed after resigning

    Hi!

    First off thank you to whoever has created a platform/forum/place for this,

    I resigned from my role and ended that day, mutually terminating with no notice period (also giving up a commission payment I was due in July), mainly due to mental health and stress but also a toxic workplace and numerous other reasons.

    Yesterday I received a DocuSign containing a "Acceptance of Resignation" letter, and within this letter it outlines that I had used annual leave over the amount of accrual - they would be deducting this from the 3 days I was to be paid for July - however this does not cover the supposed amount and they have said by my contract I am bound to reimburse them for an amount - however reading through my contract I can only see clauses that cover deductions or withholding, nothing saying I agree to pay anything to the company for any reason.

    I will put what I can below but any advice on whether this is just a strong arm tactic (it would not surprise me) or what exposure I may have to not paying this, or any advice on how to go back to them would be greatly appreciated - I feel from their wording of "May take this further" that they do not want to commit to saying they have coverage as I expect they don't.

    The Letter sent to me:

    "You have already used 13 days' holiday in this holiday year, which is 7 days in excess of your accrued holiday leave. You will be required to reimburse the Company for this additional leave taken and in accordance with your contract of employment, the amount owed will be deducted from your final salary. We will therefore be deducting the money from the 3 days you were employed in July, and you are required to repay a further £538.46 to the Company.

    Failure to do so by Friday, 12th July 2024 may lead to further action being taken."

    Clauses in my contract relating to salary/payments/overpayments:

    This is in the Holiday section

    1. "We shall not pay you in lieu of untaken holiday except on termination of employment. The amount of such payment in lieu shall be 1/260th of your full-time equivalent salary for each untaken day of your entitlement. However, if we have dismissed you or would be entitled to dismiss you under clause 8 or you have resigned without giving the required notice, such payment in lieu shall be limited to your statutory entitlement under the Working Time Regulations 1998 and any paid holidays (including paid public holidays) taken shall be deemed first to have been taken in satisfaction of that statutory entitlement.

    If you have taken more holiday than your accrued entitlement at the date your employment terminates, we shall be entitled to deduct the excess holiday pay from any payments due to you, calculated at 1/260th of your full-time equivalent salary for each excess day."

    This is in the "Salary" section:

    "We shall be entitled to deduct from your salary or other payments due to you, any money which you may owe to the Company at any time, to include, without limitation; over-payment of salary, advances of pay or loans made to you by the Company, losses or damages sustained by the Company caused through your actions while employed. The details of the Company’s discretionary commission or bonus schemes are available on the Company intranet."

    Any advice would be greatly appreciated and I will happily donate to the page for any reassurances people with experience in this area may be able to give me.

    If you require further info please let me know, thanks in advance!
    Tags: None

  • #2
    It is very clear from the second paragraph of the Holiday Section that your company is entitled to deduct overtaken holiday pay from any final payment owed to you.

    "If you have taken more holiday than your accrued entitlement at the date your employment terminates, we shall be entitled to deduct the excess holiday pay from any payments due to you, calculated at 1/260th of your full-time equivalent salary for each excess day."

    Since you do not have enough salary owing to cover the overtaken holiday then yes, they are entitled to remind you that are contractually obliged to pay all the money back and agree with you a way to make the payment once you have left the company.

    I would advise though, that they do need to provide you a full breakdown of the amount owing and support it with the details of the holiday taken and how the accrual has been calculated to detail the overtaken holiday.
    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

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