Work say i'm being overpayed - need assistance with calculations!

[SharleneG1]

Hey all!
To cut a long story short:

I work fixed term in my permanent employment and have the summer off (unpaid for most of it). I took a job over the summer to tide me over.

After a meeting with new employer I accepted an offer of 6 months work, 20 hours per week, for 10k.
I asked for this in writing before signing the contract, and had the below email from new employer;

'1. Start date Monday April 3rd - Sept 31st (6 month period)
2. 10k salary over this period based on a 20 hour week. (how ever during this 6 month period, if you worked more hours you will be paid on an hourly rate after the 20 hours based on salary rate)
3. you supply your own lap top, phone.'

I was paid £800 odd months 1 and 2 (after deductions, student load, pension, etc) before being told by accounts that I was being underpaid and should be taking home around £1400 per month. Month 3 and 4 I was paid around £1850 which included back pay from month 1 and 2.

Today I have been called into the office by assistant manager and told I'm now being overpaid, and the original two months were correct and I owe them over £3000 and they've asked how I would like to repay this. I asked them to explain me being underpaid then overpaid and owing so much, I was told my salary calculations are wrong and I'm actually on 10k per annum pro rata'd (equivalent to £20k per annum full time). I queried this and stressed I was told it was 10k for the 6 month period, working part time. They say I am wrong but I have this in writing as above terms... or am I reading this wrong?

I've tried salary calculator etc but as I'm only working 6 months not 12 months I'm unable to find the right calculations to help me work out what's happening and how much I should actually be getting.

Any help, assistance or views on the agreed terms will be a great help! I don't know if i'm reading them wrong (my fault), or if my employer has written them wrong (their fault)

If thats the wording used its very vague and open to interpretation but i would lean on it meaning as you have meant it.

The fact there is back and forth means they are just as confused.

I would hold firm.

What is the average FT salary for the role jn the area. Is it 20k or is it 40k

Actually - rereading it is clear the 10k was for that period

I would stop thinking about what you receive in your actual bank account. Thw tax/student loan/pension etc will work itself out.

What's important is what your gross payment was. Based on the email wording I would fully expect to be paid £1,666.66 per month gross for 6 months - a total of £10k during the period.

If there was no mention of pro rata in your original contract I would push back hard and point this out.

How much gross have they paid you so far?

Did they mean September 30th or October 31st? There's no September 31st!

This may be part of the problem. ..

They are wrong op. If the wording in your op is accurate then have them explain it to you. It seems very clear to me.

Agree completely with this... Have they given you payslips?

If not, this is a legal obligation and do not engage in any further conversation about repayments until you've had all payslips to date.

If your gross pay is any less than £1666 then I don't think you can owe them money. If they are still adamant then ask them to give you exact calculations of how much and why and share it here.

Agree with above it would be easier to help if we know your gross pay rather than take home.

However, wording is clear - you are right it should be £10k for the period. If they think the £10k was for a full year then presumably they want to pay you £5k for 6 months works.

£5000 / (26 week period x 20 hours a week) would work out to be £9.60 an hour. That’s below minimum wage now if you are over 21. So they are definitely wrong! You can give that calculation to them if needed and it should end any argument.

But yes should be £1,666 per month gross (before all the deductions for student loan etc)

Thanks for all replies so far! extremely helpful and very grateful for the input.

• they mean 30th September as resume my normal employment 1st October (which they are aware of)
• job salaries vary hugely where I am. as a guide I was in a similar job two years ago and was taking home around 32k full time but had more responsibility than this role.
• the wording in the initial post is literally cut and pasted from my employers email - which is where my confusion lies lol!
• I took the job based on the proposed pay so I’m gutted to learn I may need to repay anything… but as per their email I believe they are in the wrong and I accepted a job based on those terms/pay which they are now backtracking on
• gross figures are here…

1=£833 2=£833 3=£2499 (£1666 plus £833 backpay) 4=£2499 (£1666 plus £833 backpay)

26 weeks (6m) for 10k for 20 hours oer week is £19.23 pH gross.

Your four payments (gross) don't even add up to 10k so how on earth can they say you've been overpaid?

Oh sorry so you have two months pay left to receive.

Fuck them.

Their accountant is responsible for payments. Let them sort it out. It's their job and that is what they are paid for.

Still two months left yes lol! But on that note if they paid me £1666 roughly as per other posts for the next two months that would be bang on 10k!

Sounds like they are now trying to say the original email meant equivalent of 10k PER ANNUM.

but 10k per annum salary for a 20 hour week works out at £9.62 per hour which is below the minimum wage if you’re 23 or over. So that can’t be right.

Surely if they meant 10k pa, so then pro rata down, wouldn't even meet NMW?

Thanks guys you’re all right - if they are implying it’s £10k per annum… it’s 100% under min wage!! Will be raising this, I have asked for a meeting Thursday!

I think that I would make a thing of "Sept 31st". Anybody who doesn't know that September has only 30 days shouldn't be anywhere near the payroll function! It shows them to be numpties and puts them on the back foot.
Then stick to insisting on £1,666 gross per month. That's what the email said. And as a PP said, paying £5k (not £10k) for six months would take you below Minimum Wage. They will owe you holiday (or holiday pay), too.

They’re trying their luck I think their wording is pretty clear it’s £10k for the period I.e. 6 months

If they try to stick to £833 tell them you will report them to HMRC. HMRC don't take kindly to employers breaching NMW. link

I would just stick with " I signed a contract for X amount. It clearly states this <here>." With a follow up only if necessary of, "The alternative amount would be less than minimum wage, so there's no way that can have been the intention of the contract, surely?"

If they stick to their guns you can take them to an employment tribunal.

Really good that NMW makes it totally clear that it's 10k for the 6 months (as did the email tbh!) Hopefully the NMW point will stop them arguing endlessly!

Are you sure you've posted the gross pay as in your first post you said it was £800 odd after deductions etc. Sorry, not trying to catch you out but it makes a difference.

Also, did you hand in your P45 (that might not be the right one) so they could put you on the right tax code as you may be paying BR tax or even have no tax free allowance if HMRC have this as a second job?

Agree with posters that it's clearly 10k for the 6 month period. If it was pro rata then it'd say that.

I think any employment tribunal would agree with your understanding and would take a dim view of an employer in this circumstance. The onus is on them to be clear and it's clear to me that is 10k for 6 months

Hold your ground, explain the point about min wage and don't agree to any deduction or anything like that

OP, you know that it is £10K for six months worth of 20 hours per weeks simply because the offer then states that if you do more than that, you will be paid accordingly... at least that's my thoughts. Either way, the lack of explicit pro rata wording, the fact that you only accepted the role on this basis and the fact that payroll (after two months) realised that you should have been paid more, all points to a common understanding I.e. that it isn't pro rata. Considering that you have to provide your own laptop etc, it doesn't sound like such a great opportunity to be honest.

@SharleneG1 I would start by emailing and asking for a written breakdown of what you have actually been paid broken down by gross pay, deductions and net pay vs what they believe you should have been paid again broken down by gross pay. Also ask them to confirm full time hours e.g. 37, 37.5.

When you get this, email again attaching your original email pointing out it does not say pro rata. Then use their gross pay to show that their calculation is below NMW of £10.42.

Calculation for whole period of 26 weeks are:

• 26 weeks@£20 = 520 hours £10,000/520 = £19.23 per hour
• 26 weeks@37 hours (full time) = 962 hours £10,000/962 = £10.39 per hour

Ask them to recalculate as you are sure their original contract would comply with NMW and therefore £10,000 for 20 hours a week is compliant but £10,000 pro rata is not.

You said you asked for the agreement in writing (wise... and it does say 10k over this 6 month period) before you signed the contact.. what does the contract say?

You are correct.. if it had been 10K per annum pro rata for 6 months, that should have been stated in the email but indeed would have been below minimum wage.