Final Salary - Owing Employer

winds0r · 28 Jun 2011 at 19:22

Evening all

I recently left my previously employer and was today welcomed home by a lovely letter.

It reads as follows:

As of your final day at ..... you owed the total Net amount of £654.46, made up of:

Season Ticket Loan = £523.60
Holidays Taken - too many taken = £130.86

There were insufficient funds available from your final salary therefore we require you to pay back this money within 10 working days.

Just out of curiosity, where do I stand?

Do I really need to pay this back within ten days or can I arrange to pay in an alternative way? What are the chances of them doing anything that may cause me even more hassle?

Superficial · 28 Jun 2011 at 19:23

did you sign a contract and if so was this clause in it?

West · 28 Jun 2011 at 19:25

Superficial said:
did you sign a contract and if so was this clause in it?

This. Unless you sign anything to that effect, I doubt they can enforce it...

One More Solo · 28 Jun 2011 at 19:25

Can't you return your season ticket and get a refund of the remaining amount? That should at least offset some of it.

winds0r · 28 Jun 2011 at 19:28

I've just read over my contract, it does not mention anything specifically related to the above. It does mention that over payments may be deducted from my salary, but doesn't mention what happens in the case of me leaving.

My manager didn't bother to go over any of this with me.

[TW]Sponge · 28 Jun 2011 at 19:28

I left a company a few years ago, I owed them around £400 apparently. I ignored the constant letters and they just gave up soon enough.

winds0r · 28 Jun 2011 at 19:30

My only concern is them trying to damage my credit rating. I work for a bank and I should know the answer, but they can't do this can they as it's not a "proper debt" ?

Jokester · 28 Jun 2011 at 19:32

When it comes to your holidays, they've effectively overpaid you as you've taken paid time off you weren't entitled to. As such they are within their rights to persue it as far as I'm aware. As for your season ticket there must be some sort of paperwork surely, but yes normally, you would also be responsible for paying that off as well.

Participant · 28 Jun 2011 at 19:34

winds0r said:
My only concern is them trying to damage my credit rating. I work for a bank and I should know the answer, but they can't do this can they as it's not a "proper debt" ?

I'm just amazed. Not a 'proper debt'? What's a 'proper debt'? Do you owe them or not?

Yes = pay, no = send them a letter explaining why you don't owe them.

I'm guessing you had a junior position but you never know when you might want to work for a bank again, you are risking your reputation and reference.

wannabedamned · 28 Jun 2011 at 19:39

^ By proper debt, he means debt which effects a credit rating. Which I doubt this one would, unless the job pass off the debt to a company to collect

Biohazard · 28 Jun 2011 at 19:39

Rob the bank for the money

shine · 28 Jun 2011 at 19:39

If you can't pay the full amount in one go then get in touch and organise a payment schedule. At the end of the day owe them money.

Shayne · 28 Jun 2011 at 19:41

(No professional knowledge) but my gut feeling is:

No way can they ask for it back in ten days. And if they did try and get it back it'd be a pain in the arse for them, and they'll probably just not bother.

But, ultimately, the reference, and that you may end up wanting to go back to them. I'd ring them and arrange repayments, over the remaining term of the ticket to repay the ticket, and the financial year to repay the holdays. (if you haven't got the cash at the moment).

Dabbles · 28 Jun 2011 at 19:47

DO NOT just ignore this. Speak to them and ask if you can pay in installments if it will cause you undue hardship. (If you actually owe the money that is...)

If they say "no", then start paying the installments anyway. IF they try to take you to court the court will take this into account when they agree a schedule for you. If you start paying off what you can afford then you are VERY unlikely to end up in court.

If you can pay it off in one go, just do it. (Again, if you owe them the money).

Do you actually owe them this money?

winds0r · 28 Jun 2011 at 19:53

They say I do, so yes I believe I do.

I'm not really prepared to pay £600 or so in one go as I'm due to move out in August and I'd much rather spend that money on forks, plates and cushions.

scorza · 28 Jun 2011 at 19:53

I don't know what the legal position is, but I'd pay the money back because it is the moral and professional thing to do. Your employer didn't lend you the money for a season ticket so you could go and work for a competitor.

Dabbles · 28 Jun 2011 at 19:55

winds0r said:
I'm not really prepared to pay £600 or so in one go as I'm due to move out in August and I'd much rather spend that money on forks, plates and cushions.

It's not your money to spend on those things until you've paid your previous employer back. Just give them their money.

winds0r · 28 Jun 2011 at 19:57

They haven't even given me a final wage today, and the money they gave me has already been spent on the Season ticket itself.

Mr Jack · 28 Jun 2011 at 19:57

What is this season ticket loan thing?

And, yes, you likely owe it and, being a bank, they already have the means to chase it.

wannabedamned · 28 Jun 2011 at 19:59

Dabbles said:
It's not your money to spend on those things until you've paid your previous employer back. Just give them their money.

They could have it in pieces, Fair enough if you'd pay them back in a lump sum. But i definitely wouldn't.