Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Work

Chat with other users about all things related to working life on our Work forum.

Original poster

Underpayment of wages

14 replies

Doolalleyalley · 12/09/2024 23:12

I wonder if anyone can help here. I've been underpaid this month by a significant chunk of salary, I'm pretty sure it would be classified as an unlawful deduction and my place of work has acknowledged I am owed this money.

The problem is, they are refusing to pay me the monies owed until next payroll, which is next month. I have read up around the issue and guidance from various websites advises that employers should rectify as soon as possible and not leave it to the next round of payroll.

Question is - does anyone know if this is written in legislation or specific government guidance?

I don't want the cf's to think they can get away with this!

Thanks in advance for any advice!

OP posts:
Mrsttcno1 · 13/09/2024 06:13

The short answer is no, it’s not. An employer obviously should absolutely in an ideal world sort this out before the next payroll, but they don’t actually have to- there’s nothing really in place to make them- and the next pay roll is fine legally.

You can report them to HMRC if you believe they are making unlawful deductions which take you below the NMW who can then conduct an investigation to look at what is going on etc.

Ultimately though the only thing you can do would be to take them to an Employment Tribunal if they were to refuse to pay, and it would cost you potentially thousands to do that, when actually it sounds like by the time you got to Tribunal they will have paid you.

TeaAndCakeFTW · 13/09/2024 07:05

Can you take it above payroll? If someone more senior intervenes and tells them to do it, they'll have to.

Wugglesworth · 13/09/2024 07:23

Where I have worked previously, if you have been underpaid and it's going to cause financial hardship then they would give you an interim 'loan'. This would then be deducted from next pay (where the original underpayment would be added). So yes, legally it is fine for them to leave it to the next pay run.

Original poster
Doolalleyalley · 13/09/2024 07:31

Thanks all, that confirms what I suspected!

OP posts:
Aubree17 · 13/09/2024 09:10

Isn't this breach of contract?
Your contract states when you will receive payment.
Do you know why the error arose? If it's all on their side then they absolutely should fix it. If the fault lies with you, say not submitting timesheets it's less compelling to expect them to fix it.
Most employers would aim to correct this promptly. It's a bit rubbish that they aren't.

Thrilley · 13/09/2024 09:17

What are they "getting away with"? A mistake has been made and they'll correct it next month, you'll get everything you're owed.

It's much "cleaner" to pay it during the normal payroll, to make sure the tax is right. If you need the money now, I'd arrange for you to have an advance on what you'll be paid next month. to tide you over, but you'd have it deducted from your next pay and it would be taxed in your next pay.

In your shoes, annoying as it is, I'd leave it to be corrected next month, unless I really couldn't manage until then. If that is the case, I'd expect the employer to help, but it would be via a "loan", they won't be able to make a salary payment.

Yalta · 28/10/2024 15:22

Mrsttcno1 · 13/09/2024 06:13

The short answer is no, it’s not. An employer obviously should absolutely in an ideal world sort this out before the next payroll, but they don’t actually have to- there’s nothing really in place to make them- and the next pay roll is fine legally.

You can report them to HMRC if you believe they are making unlawful deductions which take you below the NMW who can then conduct an investigation to look at what is going on etc.

Ultimately though the only thing you can do would be to take them to an Employment Tribunal if they were to refuse to pay, and it would cost you potentially thousands to do that, when actually it sounds like by the time you got to Tribunal they will have paid you.

Not necessarily cost you anything as employment disputes are covered if you have legal cover on your home insurance policy

Yalta · 28/10/2024 15:29

What are they "getting away with"? A mistake has been made and they'll correct it next month, you'll get everything you're owed

That chunk of money could have been allocated to pay a bill or 2. Do you think that companies will just say that’s ok we will wait for our money without adding late payment fees or impacting credit files

If that chunk of money was to be paid to a credit card to pay off the balance then interest will be charged on the balance not paid

Not everyone can afford to only be paid some of their salary and not all of it.

I would say if they pay you next month then you need compensation because if the damage to your credit file and the charges you will face not paying all of your bills

TheLurpackYears · 28/10/2024 17:34

If you' ve asked them to pay you correctly and they won't, you could start the tribunal process now and ACAS will be in touch with your employer within a couple of weeks. And let them know you have done this.
Obviously there is potential to escalate any conflict and also it's not really going to speed up getting paid if they don't want to pay you.
Good luck, it's a massive and potentially costly fuck up you shouldn't have to deal with.

StrathBxx · 28/10/2024 17:47

Don’t think this is legal.

I had a similar problem in previous employment. My company pays staff last day day of each month (30th or 31th) but they have an additional/ subsequent date for any others payments on the 4th. I think most companies should have this in place.

They underpaid me one month on my usual payslip end of month (on purpose due to suspected cash flow problems) I took the following steps and got my money on 4th ( ie the following week).

  • Called Payroll immediately
  • informed them how much they owed me
  • noted down the person I spoke to (including date and time)
  • emailed them to capture what we spoke and documented all efforts made to address the issue but failed.
  • stated to them they must payout within 14 days if not I will take them to court and won’t be coming to work without further notice.

they paid me within 14 days.

hope that helps.

BlackToes · 28/10/2024 17:52

My company would pay on request

UncharteredWaters · 28/10/2024 18:08

Large company or small?

This happened me in the NHS - I was clear that I would encounter unpaid bills and fees etc and I would be expecting payment for them.

Finance tried to give me the toss off of can’t make an emergency payment.

I said that’s fine I’ll escalate to management - who said would do it in 7 days. Couldn’t prioritise me over others…

By that time I was pissed off with their attitude, so I went to the clinical director and finance director - when I said I wasn’t able to come to my nightshifts until paid as I was too poor to get there due to their incompetency…..

it’s was paid at 6:20 pm on a Friday night!

guess that locum would have been more expensive.

UncharteredWaters · 28/10/2024 18:09

Basically go to the highest person possible and lay on thick about fees/charges/money and the impossible position you are in and the stress they are causing.

DeathpunchDan · 30/10/2024 14:49

This happened to me. They underpaid 2 weeks salary and left me unable to pay rent. I was expected to just cope with that until next pay day, which I refused to let happen because it was their mistake.
I ended up emailing the Managing Director and copying in the person I spoke to in Payroll. I was paid the following day.

New posts on this thread. Refresh page
Swipe left for the next trending thread