Hi All,
Just wanting some thoughts on an issue. An employee has handed in his notice having spoken to his manager who has allowed him to finish earlier due to finding another job. However the problem is that he leaves on Friday but has been paid until next Monday with no intention of either working the Monday or paying the company back the extra day. He has also taken 2.5 days extra holidays during the financial year, this equates to 3.5 days of pay he would owe the company.
Has anyone had a similar experience and how do we claw the money back?
Could we withhold his P45? or what other alternatives are there?
Please share your thoughts.
Regards
Bal
Replies
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An interesting question and afraid one which happens all too often given the timings of the payroll run. Firstly I would check to see what contractual provision there is for making deductions from salary payments typically this would be included under a deductions clause within the contract. &lt;br /&gt;<br /><br />
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Even if there is a deductions clause initially I would take the approach that anything is possible with mutual agreement and I would seek to get the employee's agreement to the deduction and get this confirmed in writing. &lt;br /&gt;<br /><br />
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If they do not agree to this then I would make the deduction from the final salary payment as long as there is a clause within the contract which allows me to do this. &lt;br /&gt;<br /><br />
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If there is not and you do make the deduction then this could be classed as an unlawful deduction from wages and the employee could see to pursue a claim for the deduction made from their salary.&lt;br /&gt;<br /><br />
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If you don't have a deductions clause and you are unable to gain the agreement of the employee you are going to have to put this one down to experience and seek to amend your contracts going forward for the future.&lt;br /&gt;<br /><br />
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Also I would be speaking with the manager to make them aware of the implications of their agreement for the employee to leave early<br />
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Hope this helps! &lt;br /&gt;<br /><br />
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Let us know how you get on&lt;br /&gt;<br /><br />
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Regards Sarah
That's great. Thanks Sarah. Really appreciated.
The problem was that he checked his account for the BACS payment prior to handing in his notice with immediate effect, and we pay for the whole month.
Think we may have to chalk this one down to experience as you say.
Regards
Kenny
Yes we had exactly the same in an organisation I worked for previously we paid on the 24th of the month for the period 1st to the end of the month.
Needless to say we had lots of employees who sometimes did not turn up after payday and even though we had a deductions clause in reality we never enforced this as the likelihood of recovering the monies was slim.
Glad the post was of use!
Regards
Sarah