Expenses rights

[Icelollycraving]

I am being made redundant. I had a call last week to say I was being deducted quite a large amount from my final salary. It relates to an expense float I had in another role within the company. They said no receipts were given & they are now deducting it. I have explained the receipts were submitted at the change of role to the line manager at that time (who has since left).
They have said they have no record of this & are deducting. I am at a loss why the annual audit did not throw this discrepancy up as the amount is from 5 years ago. Really upset & worried. What is my legal standing?

I can't help with your legal standing, but I may be able to answer the question about the annual audit. I am an auditor and we have a "measure" called materiality. This can be considered as "does it matter?"

If the company said you held an expense float, unless it was really big, it would not be significant enough to affect the audit, or for the auditor to confirm the balance with you.

Sorry, not the answer you want to hear.

Thanks for your reply. Bugger!

They can't just make a deduction unless you have a specific clause in your contract that allows them to...otherwise it's an unlawful deduction from pay.

So step one - check your contract

I would also be challenging them on why it's taken quite so long for them to realise it's an issue.

Did you keep a copy of your expense claim & receipts?

An employer is allowed to deduct an earlier overpayment of expenses from your pay. They have that legal right regardless of whether or not there is a clause in your contract. It is not an unlawful deduction from pay.

Having said that I would certainly query why it has taken so long for them to realise there is a problem. I would also take a strong line with them. Repeat that you submitted the receipts. If they lost them or failed to process them that isn't your fault and doesn't mean you owe them any money. Point out that if you had not submitted the receipts they would have been asking for repayment 5 years ago, not waited until now.

If they will not budge you have the option of taking them to court. The matter would be decided on the balance of probabilities. You wouldn't have to prove that you submitted the receipts, just convince the court that the most likely explanation for the situation is that you submitted the receipts but the company has lost them.

Well,good news! I found all the copies of the receipts & they total 50% more than the float :o

That is good news! Does this mean they owe you more than the money they deducted?

Looking that way!

B.sta.ds. Glad you have caught them out!

Me too :)

Hurrah!