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Payroll - Final salary payment

Hi.

I have started working at a company on the 23rd of April 2012.Tax code 810L.

On the 18th of May 2012 the boss told me he don't want to pay me as much and he will look elsewhere.I said ok.So I have worked from 23 April until 18 May 2012 inclusive.I have taken half day off to go to my doctor during my emplyment.The woman who is doing payroll is a woman that she don't know anything about accounts or payroll but she has worked there 8 years so what she knows is from her time there.So,I contacted her after I left on the 18th of May and she told me the boss said to wait to run the payroll that will be paid on the 25th.So,I am not sure what he wants to do but I want to make sure I will get paid the money I am owed.I have signed a contract,I have never taken a lunch break but I don't care about that,and the holidays entitlement is 20 days per year if I have served less than a year,which I did.So,what should it be my final pay?with a breakdown please.The notice period is 1 month as it states in teh contract.The boss simply wanted someone cheaper,and although I took a £,00 p.a. pay cut still it seems he wasn't happy about it,but in the end of the day he should have thought of that prior employing me.My salary there was £32,000.Thank you

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By ml73
19th May 2012 20:35

actually,reading their contract,silly me, it states "we will normally give u notice of at least 1 month for up to 4 years employment.however,we do not have to give you any notice during the first month of employment"

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By tom123
20th May 2012 07:00

Pay calculation

I would calculate the payroll thus:

Salary / 260  (working days in the year)

Multiplied by the actual days worked.

 

I would prepare a payslip at the time of leaving, and raise a cheque for the net amount - particularly if I as the employer had ended the contract.

If I was this employer I would also be adding 1 month holiday (2 days?). Some firms have a rule that holiday is calculated for complete months served only, - but hey you didn't ask to leave.

(this should be possible with most payroll systems - it is with Sage Payroll for example)

I presume the company pay day is 25th, so many systems cannot produce a p45 until all the pay has been completed.

 

good luck

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Holiday pay cannot be for complete months only

tom123 wrote:

I would calculate the payroll thus:

Salary / 260  (working days in the year)

Multiplied by the actual days worked.

 

I would prepare a payslip at the time of leaving, and raise a cheque for the net amount - particularly if I as the employer had ended the contract.

If I was this employer I would also be adding 1 month holiday (2 days?). Some firms have a rule that holiday is calculated for complete months served only, - but hey you didn't ask to leave.

(this should be possible with most payroll systems - it is with Sage Payroll for example)

I presume the company pay day is 25th, so many systems cannot produce a p45 until all the pay has been completed.

 

good luck

That rule is common, but illegal, and fails if challenged. Paid Holiday is accrued at a minimum of 28 days per year, pro rata. But don't forget to take off any holidays actually taken during the period of employment (including bank holidays), so there probably won't be much holiday pay.

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21st May 2012 10:15

paid on normal day

It is perfectly ok for the employer to pay you on the normal day that payroll is run (i.e. you don't get paid any earlier or get your P45 earlier just because you leave part way through a month).  I agree with Tom re the pro-rata holidays i,e they are based on a minimum of 28 days per annum and complete months served is a nonsense.  I would calculate that you are due 2.15 days holiday less the 1/2 day for the doctor's appointment.  Take a look at the Direct Gov site for more information.  http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/DG_184563

You worked for 20 working days and as mentioned above your pay should be calculated as salary/260 working days x number of days worked .

Stick to your guns regarding the holiday pay - it's something that too many employers still get wrong and two days pay is worth fighting for!

 

 

 

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By ml73
21st May 2012 13:17

Hi,thank you for all this,it is SO helpful.BUT!!! Holidays are 2 days per month isn't it?becayse the lady who is doing the payroll thinks is 1,66???? but, working 4 weeks,do I qualify for holidays?and how many?as i was not a month there (so close though)

so my final salary should be £32,000 p.a. / 260 days X 20 days worked (excluding weekends)

that will eb the GROSS isnt it?

The other thing is what about the 1 months notice?

-As I was not in any fault the Employer decided he wanted to spend less money for my position-

the contract states,regarding the 1 months notice:

it states "we will normally give u notice of at least 1 month for up to 4 years employment.however,we do not have to give you any notice during the first month of employment" so,am I entitled to a months notice or not?the company wnated 1 montsh notice for me but in the contract it states the above.quite cheeky.

My point is, if he didnt want to employ anyone with that salary,he shouldnt ahev from the start,as i had another offer.Now,suddenly he decides that,ok,its his right.but it leaves me with trying to find a job again,i didnt even have any notice.he said he didnt have any problem with me,i have amazing personality etc but he dont want to pay much. well..what can u say!

Thanks (0)

Holidays and notice

If the contract says no notice in first month then I guess that is the employer's right.

You qualify for paid holidays at a minimum rate of 12.1% of days worked, and that applies however short a time you worked there. That includes bank holidays. In any case to find out your minimum statutory holiday entitlement take 12.1% of days worked, and subtract any paid holiday that you've already taken. Whatever is left you should be paid for at your normal daily rate.

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21st May 2012 14:10

Yes that will be the gross - £ 2,461.53

Your holiday entitlement accrues from the day you start and the minimum is now 28 days per annum (which can include bank holidays) she may be saying the holiday entitlement is 20 days plus bank holidays - ask her to clarify.

 

The point about notice periods is :- . 

Notice your employer must give you

Whatever your contract says, your employer must give you at least the statutory minimum period of notice, which depends on how long you've worked for them:

one week if you have been continuously employed for between one month and two yearsone week for each complete year (up to a maximum of 12) if you have been continuously employed for two or more years

 

Thanks (1)

1.66 + paid bank holidays then

landscaper wrote:

Yes that will be the gross - £ 2,461.53

Your holiday entitlement accrues from the day you start and the minimum is now 28 days per annum (which can include bank holidays) she may be saying the holiday entitlement is 20 days plus bank holidays - ask her to clarify.

 

Yes indeed. If they're working on 1.66 days per month (pro-rata) then presumably they must also pay any bank holidays during the period of employment as well.

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By ml73
22nd May 2012 13:41

hi and thank you for your answer.the boss e-mailed me today
" X company will pay you for the hours worked and for any holiday entitlement that you have accrued but not taken.

However, in accordance with your contract of employment which states, "we do not have to give you any notice during your first month of employment", you are not entitled to notice of the termination of your employment, or pay in lieu of any notice. We have taken advice on this matter to be sure that we are operating the contract correctly. For your information, the statutory minimum notice within a person's first month of employment is that there is no notices so we are complying both with your contract and the statutory requirements."
so,not even statutory notice payment will be made

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By ml73
21st May 2012 17:04

what intrigues me is the fact teh notice period states "we DONT HAVE TO" so,basically teh employer does not state if he will or not give 1 months notice.taht is a grey area i can argue about.what worries me is the salaries are getting paid on the 25th but he told the lady to wait...i think he wants to argue paying me what i am owed..i hope not! cause i dont want to be going to any county court.

i did not know that if he wont pay me 1 montsh notice that i still have statutory notice that is a week per month (although i was not really there 1 month,soooo close to be there a month)

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