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I can't belive how my employer worked out my final salary, is this really right?

(23 Posts)
PoisonToadstool Wed 21-Oct-09 14:44:27

I recently left my job and worked two days into the new payroll month. I used my employer's nursery, so also had two days nursery fees to pay.

The nursery have written asking for the outstanding balance of £6 or so because my salary for that month did not cover it - yet my salary was 3x the nursery fees.

So after enquiring I am told that I have been paid 2x a daily rate, where that daily rate is calculated by dividing my annual salary by 365.

As I worked 26 hours over 3 days I cannot see for the life of me how this is fair??

As I worked 15 hours over those two days, it means my pay equates to less than the minimum wage.

Can they REALLY do that?

flowerybeanbag Wed 21-Oct-09 14:50:39

They shouldn't use 365 days because unless you normally work 7 days a week you don't work 365 days a year.

260 days is commonly used for people working full time, as that's the number of working days in a year once you take off weekends.

SO if you get paid say £20,000 p.a. for a 5 day week, your daily rate ought to be £76.92 or thereabouts.

PoisonToadstool Wed 21-Oct-09 14:56:18

Thank you flowery, I admit when I got that email I felt absolutely incensed but then wondered if I was being unreasonable - where do I go now, they are insisting that there will be no amendment to my final month's salary. I cannot accept that I worked two days for nothing, at a loss even!

flowerybeanbag Wed 21-Oct-09 15:05:18

You need to write to them. Work out your daily rate for your self using the example I've given, assuming you normally work 5 days a week. Also you could work out your hourly rate based on how many hours a year you work and quote that. Point out that you worked 2 days/x number of hours and therefore should have been paid x amount for that and if they refuse to adjust your payment accordingly they are a) breaking minimum wage legislation b) in breach of contract in terms of the contractual salary you should be paid and c) making an unauthorised deduction of wages.

PoisonToadstool Wed 21-Oct-09 15:14:38

Thanks again, correspondence has been via email and goes along these lines:

Me: asking why no salary first of all

Then: you were paid X but nursery fees took it all

Me: don't understand as salary is more than nursery

Them: you were paid two days equalling 83.18

Me: I worked 15 hours so how is that worked out?

Them: The salary of £83.18 is calculated by taking your whole months salary of £1247.65 dividing it by 30 days = £41.59 and multipy by 2 days = £83.18. Giving 2 days salary.

Me: I worked 26 hours over 3 days so don't understand

Them: You are paid 365 days etc, (as per my OP)

Me: that's not fair

Them: This calculation is how all salaried employees are paid. Full time employees only work 5 days per week but there salary is paid for every day of the year the same as part time employees.

This is how XXXXXXXXX pay there salaried employees.

Me: shock

So should I insist that this is reviewed? I feel so angry, I gave them so much, I was completely messed around after maternity leave, tricked into a job I didn't want, and now they can't even pay me, they just want me to say 'okay then' and go away.

It's public sector, btw... if that makes a difference?

flowerybeanbag Wed 21-Oct-09 15:20:38

Yes insist it's reviewed. Write to them formally as I've set out. That's such rubbish as I've said, salary isn't paid for every day of the year, you get paid for the days/hours you work, otherwise part timers and full timers would get the same amount. They don't, because part timers work less hours and are paid less as a result because their pro rata salary is worked out based on how much time they actually do work.

If you've worked x hours this month and been paid at a lower rate than you normally would, then they are breaching your contract, the minimum wage (assuming it works out less than that), and are making an unlawful deduction.

if it's public sector there should be umpteen policies and procedures and an HR dept and payroll dept as well. Is there? You could raise it directly with them as well. Does your contract say anything about payment on termination of employment, often it says there how it would be worked out.

PoisonToadstool Wed 21-Oct-09 15:27:20

Message withdrawn

flowerybeanbag Wed 21-Oct-09 15:35:04

Looking at your original contract would do to see how they calculate final salary if there is anything on there.

I understand the calculation you've used for working out your FTE salary. I think if you're going to use FTE, you need to stick with that when working out what your daily rate should be, ie divide £21,306 by 260 working days in a full time year.

I think as your hours varied it might be clearer to work out an hourly rate as well that you should be receiving. Work out how many hours a year you work and divide your actual salary by that.

PoisonToadstool Wed 21-Oct-09 15:48:00

Thanks, I shall dig it out tonight, I am truly shocked at their insistence that no, I'm not paid £11 per hour but £40 a day, every day!

foxinsocks Wed 21-Oct-09 16:39:21

yes I use 260 days for that sort of calc

using 365 is taking the arthur bliss!

from the tone of her emails, it sounds like she doesn't actually know what she's doing. Is it HR or Finance you are corresponding with (not that I'm casting aspersions on either wink but I'm wondering if you've got someone who's not done this sort of calculation before).

PoisonToadstool Wed 21-Oct-09 17:32:09

Thanks fox, it's payroll, and I am getting more and more incensed. They are now saying I was paid less because of nursery fees hmm this has nothing to do with nursery fees!

My contract only states my (then) salary and pay date, frequency of pay, and (then) weekly hours.

The emails from them (two people now) are basically just trying to tell me that I am wrong and not penalised for working part-time, yet the part-time day rate is lower than the full-time day rate and I did two days of 7.4 hours, which I would have done if full-time anyway - so leaving aside the insane logic of payment being split over 265 days it is still an unfair system.

I have mentioned that my pay did not even meet min. wage three times, and three times it has been ignored.

Should I contact ACAS at this point?

PoisonToadstool Wed 21-Oct-09 17:33:18

365, rather

<blinded with rage>

bigstripeytiger Wed 21-Oct-09 17:36:42

Maybe you should going higher up within the HR department. If you cant make the people that you have been dealing with understand then it might be better to try someone else.

PoisonToadstool Wed 21-Oct-09 17:40:21

Yes, I will try to find out the position of the two people I've been speaking with, I think one of them is a manager, but of what I am not sure.

I hate to be overdramatic but I feel as though I am being told that 2+2=5 angry

MadameDuBain Wed 21-Oct-09 17:45:05

They are being ridiculous and if you get no joy with them, go to the CRB.

Another thing you could say to them is OK you would like to be paid for saturday and sunday that week, plus a day's holiday, as they are taking them into the calculation.

MadameDuBain Wed 21-Oct-09 17:45:21

Oops I meant CAB sorry

onadietcokebreak Wed 21-Oct-09 17:45:42

Poison...you have named your employer in one of the posts...you may like to ask mumsnet to retract it

PoisonToadstool Wed 21-Oct-09 17:48:40

I am just baffled at the idea that you are paid EVERY day but only a pittance - absurd, absurd, absurd!

Are CAB better than ACAS - must admit CAB will be reeeeaallly difficult with DS.

Thanks for the help

foxinsocks Wed 21-Oct-09 17:49:21

well I would go to your manager and probably HR first

their story appears to change the more times you ask them

PoisonToadstool Wed 21-Oct-09 17:52:38

Oops, thank you onadietcokebreak, I didn't spot that. I've reported it.

fox my manager forwarded me onto payroll as she had no idea what to do or what was right.

You're right, it is changing - one minute the daily rate is based on hours worked, the next it's based on days in the frickin year. They keep bringing sodding nursery fees into it which is a complete red herring.

flowerybeanbag Wed 21-Oct-09 19:52:23

I would suggest you write formally to whoever has overall responsibility for payroll, so possibly the Finance Director, or someone else very senior, setting out everything that's happened and everything you've been told, and requesting his/her response as a matter of urgency.

Rebeccaj Wed 21-Oct-09 21:48:28

Another way to do it would be to look at your monthly pay, divide it by the days you work in a month, and then send them an email with this calculation and saying that they clearly owe you 2x this calculation. I can't see how they can reply that this isn't correct!

BetsyBoop Tue 27-Oct-09 15:00:59

when I worked in the public sector (in payroll) the hourly rate was worked out as follows

A = annual salary / 52.2 (weeks in year)

hourly rate = A/gross conditioned hours per week

eg if standard working week was 37hrs ("net conditioned hours") , gross conditioned hours is 42 for the five hours "paid" break (I always thought this was a bit of a con TBH! - but the theory was you were paid for 42hrs but only had to work 37hrs on your flexi-time, so effectively had a paid hour off each day)

The above would be based on a FT salary of course.

Don't know if this helps? It might not be the same in every public sector org of course.

Can't see how they can pay you less than the minimum wage hmm

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