Final wage deduction.

[SomeGuy]

Hi,

I have recently left an employer and have received my final wage. The employer has decided not to pay me my "pay progression bonus" and they have advised that as I am a leaver they have no obligation to do so.

The bonus itself is an hourly supplement of £1.70 this is based on a quarterly review and my work is appraised and then measured against set criteria. There are a number of different bonus rates for what they call "developing, achieving & advanced" quality.

The bonus is paid in arrears so for any payment I would expect to receive in August to be for work completed in July (long before I even handed in my notice). I can obtain in writing the conditions of the bonus as I was subject to an additional rate in exchange for moving department. They contract does have a clause pertaining to "commission" as being at the company's absolute discretion however I see it as being an agreed hourly rate for hours worked. The point being that if at at any point in the period I am being paid for had I asked how much I will be paid for the hour I am about to work I would be told a rate including the bonus. To then retrospectively advise that as I have now left the company that the agreed hourly rate for this work will now not be honored doesn't seem legitimate.

Does anyone have any knowledge of these sorts of retrospective amendments and would I have a case to pursue my former employer for the shortfall?

[Johnboy007]

Re: Final wage deduction.

Hi,
It is unlawful for an employer to withold any monies that are due to you.
The law protects individuals from having unauthorised deductions made from their wages, including complete non-payment. This protection applies both to employees and to some self-employed workers.
Your employer isn’t allowed to make deductions unless:

• it’s required or allowed by law, eg National Insurance, income tax or student loan repayments
• you agree in writing
• your contract says they can
• there’s a statutory payment due to a public authority
• you haven’t worked due to taking part in a strike or industrial action
• there’s been an earlier overpayment of wages or expenses
• it’s a result of a court order

Can you post a copy of the bonus agreement, and also details of how you're paid, for example, week in hand, etc.
How long have you worked for that employer?

If the employer has made an unlawful deduction, then you should write to him requesting the money.
If the employer refuses to pay you what is lawfully yours, you can complain to a tribunal.
The following link will tell you how.
http://www.justice.gov.uk/tribunals/employment

[SomeGuy]

Re: Final wage deduction.

Bearing in mind that this contract is over 2.5 years old some of the figures have changed and amendments to the pay structure have come and gone these are my particulars in regard to bonus etc as it stands.

5.2 Accordingly, on termination of your employment, you will be entitled to payment of your final salary together with one weeks "lying time" if applicable and requiring that no deductions require to be made from your salary.

5.3You may, entirely at the discretion of the company, be paid commission in accordance with any applicable commission structure. Commission structures vary between campaigns and commission is neither guaranteed nor a contractual right. The company reserves the right to vary commission structures at any time and without notice to you. Details of any commission structure that may be applicable from time to will be provided during training for the relevant campaign.

5.4 (re-imbursement of costs incurred in performance of duties etc)

5.5 The company reserves the right to deduct from pay any sums which you may owe to the company from time to time, including but without limitation, any overpayments made to you by the company. By signing this contract you agree to such deductions being made.

Now, I see that they have attempted to cover their back on the "bonus" pay however would I be right in saying that the offer that I have in writing to be paid an additional rate until September in respect of me moving to another department supersede any contractual right that the company has attempted to guarantee with these clauses?

i.e in terms of the work carried out, the work has been carried out on the revised agreement. By giving notice to an employer surely that wouldn't give the company lawful reason to then renumerate me differently than agreed and differently from colleagues that carried out the same work for the same period..?

I was paid Monthly with one week lying time retained at point of hire. the pay cut off for basic wages was calculated on a cut off roughly between 17th and 21st of each month. The wages being paid on the 28th. The disputed bonus however was rated from the 1st of the month and paid on the 28th and paid 1 month in arrears. So if for example, I got an increase in this bonus on 1st of January, I wouldn't see the extra money until the wage at the end of February. So the money they are retaining is from a period where I had no intention of resigning and the period on which it was calculated was complete before my notice was given.

Any help again would be grand!

Thanks,

[Johnboy007]

Re: Final wage deduction.

Hi,
Well the sticky point as far as I can see, is the fact that your company have used the phrase 'entirely at the discretion of the company'.
They have also used the terminology 'Commission' rather than 'Bonus'.
Now if commission is the same as the bonus you are talking about, then clause 5.3 above, takes your bonus away.
In that it is neither guaranteed nor a contractual right.
So Unfortunately, the company can either pay you commission or not, as they see fit.
I do need to see the offer of the additional rate........
Regards JB

[SomeGuy]

Re: Final wage deduction.

I understand your point but I would expect that the discretion and lack of notice permitted to change the terms on which I am paid cannot apply retrospectively after the work is carried out, rather it may be altered with immediate effect...? I'm still trying to get hold of the offer of increased pay on the basis of bonus but seeing as I've now moved from the company my email access is gone so I need to get them from colleagues. Lucky I'm still in the same building!