Deduction from salary

[Lexielily]

My daughter has been fortunate to obtain an fantastic new job and handed her notice in three weeks ago. She intended to start her new job on April 8th. She has called me this morning deeply distressed as her employer has informed her today that they are going to deduct three years college fees, approximately £1500, from her salary due for payment at the end of this month. They have also stated that she must leave on the 22^nd of this month although she had agreed to work until April 5^th in order to help them with holiday cover. She has no holiday due and so will also lose a further two weeks’ pay. This was all emailed to her at 7am this morning. She hasn’t done all the sums yet but it is possible that she will receive no pay whatsoever this month. This will leave her unable to meet her mortgage payment this month.

She has worked for the same large national company for 16 years and is the technical manager for the site where she is based. She has no actual contract of employment only a letter sent on her appointment 16 years ago stating the terms of her engagement and it does not contain any mention of college fees or their repayment. She did not even know how much they were until this morning. She has signed nothing specific regarding her college course.

In addition to this disgraceful treatment of a long standing employee I believe this deduction is illegal on many levels. One – she has not and could not have agreed to the deduction of an unknown sum of money from her salary. Two – I think it is unlawful to deduct an amount from one month’s salary which has the effect of reducing that salary to below the national minimum wage. Three – the reduction of her notice period without pay means she has effectively been dismissed without cause.
This information has been emailed to her by her manager and she has forwarded the email to her HR department which is based on another site and they have arranged a meeting with her tomorrow. We will see what they have to say but I would be interested to hear what you think about it.

[Eloise01]

Re: Deduction from salary

Unfortunately, what you believe is not in fact relevant.

If she is legally obliged to repay this money, which is actually the only relevant issue, then she can and has agreed to repay an "unknown sum" of money from her salary. It is not unlawful to deduct the entire of any monies owed to an employer from a final salary - the rules on NMW do not apply to deductions from a final salary. And whether they can reduce her notice period depends on what her letter of resignation says - if she did not specify a termination date in her resignation, then the date is not determined; if she did then they cannot change it to suit themselves.

On the matter of the training fees, such fees cannot be rclaimed unless there is a signed training agreement. She should ask the employer to see a copy of this document - if they can provide one then they have a legal right to make the deductions, and if they cannot they do not.

So the relvant matters are: can they produce a traning agreement, and did she specify her termination date in her letter of resignation?

[enquirer]

Re: Deduction from salary

Employed for 16 years. How long ago was the college course (and what level and type was it?) for which they are seeking reimbursement?

[Lexielily]

Re: Deduction from salary

My daughter initially gave one month's notice as per her terms of engagement. Her employers asked her to extend this by two weeks because other staff would be on holiday and she agreed to do that. So her second date of resignation accepted by both parties over two weeks ago was April 5th not March 22nd.

She has not signed or even been shown any training agreement at any time during her 16 years of employment. The company she works for generally only offer training to cover statutory needs and other issues like health and safety. My daughter, ironically, was offered the chance to take a second degree of her choice as she had covered the work of the general manager who had suffered a nervous breakdown for almost six months without any increase in salary. She may yet live to regret accepting this 'generous' offer. The degree she is taking (she will be finished within a few weeks). Her course is related to the food industry she works in, but is in no way directly related specifically to the niche area her employer occupies.

[Eloise01]

Re: Deduction from salary

It may be difficult to evidence a verbal agreement about leaving dates - does she have any evidence to support the later leaving date?

On the training, it still comes down to the position I stated. If there is no agreement then they cannot reclaim the fees, but she needs to challenge them on this matter. It is up to them to prove she signed such an agreement and the terms of that agreement. Simply saying she didn't sign it isn't enough - she needs to challenge the deduction and the reason for it by asking to see the training agreement she signed agreeing to such a deduction. She either does it now, or she waits, doesn't get paid and still has to do it before she can make a tribunal claim. She has to try to resolve this with the employer and there is no other way to do it.

[Lexielily]

Re: Deduction from salary

Thanks for your replies. My daughter has met with her HR department this morning. She was told that the email was sent by her immediate superior without consultation with them and apologised for the distress caused to a long standing employee with an exemplary record. She is now working up to April 5th, (the date she gave in her letter of resignation)on full pay, and NO deductions will be made from her final salary for her college fees as the company did not ever expect her to reimburse them. In addition she has discovered she also has a few days holiday pay owing she wasn't aware of. Its a good outcome but has left her feeling saddened and with the general manager (who sent the original email) refusing to speak to her and only communicating by email.

[alham]

Re: Deduction from salary

Thanks for your replies. My daughter has met with her HR department this morning. She was told that the email was sent by her immediate superior without consultation with them and apologised for the distress caused to a long standing employee with an exemplary record. She is now working up to April 5th, (the date she gave in her letter of resignation)on full pay, and NO deductions will be made from her final salary for her college fees as the company did not ever expect her to reimburse them. In addition she has discovered she also has a few days holiday pay owing she wasn't aware of. Its a good outcome but has left her feeling saddened and with the general manager (who sent the original email) refusing to speak to her and only communicating by email.

Just goes to show that HR is such a minefield. Good result, nevertheless.

[Eloise01]

Re: Deduction from salary

Just goes to show that HR is such a minefield. Good result, nevertheless.

Or, alternatively, as I must frequently remind people, it pays to ask the employer first, before leaping to the law. Because it often is that simple!