Deductions from NMW and leaving employment

[119911]

Hello.

 

I've been with my employer just shy of 12 months, I started as an apprentice and qualified not long ago.

when starting I was told I would be paid £6.50ph (NMW at that time) and would be collected and returned home by one of their vans.

 

My position is a painter ( was apprentice, no formal change of title, other than the fact I have qualified )

 

I had no problems with the firm until october last year when they failed to increase my wage inline with the NMW increase to £6.70 an hour. They did eventually around christmas time 2015. I am techincally owed the missing wages , but I didn't chase it at the time.

 

a few months ago, the company decided to deduct fuel allowances from the all employees wages of £60 per month.

this of course meant my wages dropped below NMW before tax/NI

 

there was no signed agreement , only a notice letter.

they had previously allowed employees including myself to send in fuel receipts and reimburse the fuel.

 

finally Today I have found out that they have not paid me any overtime that I have worked recently.

They haven't explained when asked why.

 

My supervisor suggests that I was in no position to bargain and I would not have a job if I start to query their decisions.

I feel that I am not respected or valued as an employee,despite putting all my effort into my job.

 

I therefore want to leave this job. however this is the first time I will have ever done this, So I am looking for advice on how best to approach this.

 

1. Can I reasonably request any money owed in underpayment during the time they paid £6.50 instead of £6.70?

 

2. Can they deduct wages taking the wage below NMW before tax and NI? If this is not allowable , can I therefore request the money be replaced to bring my wages in line with NMW?

 

3. I have calculated I still have at least 7.5 days holiday to take so far this year, can I ask for this to be paid with my final payment?

 

 

finally , how to progress with the resignation process. can I put the above requests in with the notice to leave email? or do them separately? if they are wrongfully? denied, how would I proceed?

 

Many thanks

[Guest topcat14]

Hi

 

Could you confirm you qualify for the adult minimum wage ie are you over 21 ?

 

If you are not, then the minimum they HAVE to pay you is £5.30 ph. If you are then you should demand in writing that the £6.70 rate is paid, giving 7 days to remedy the problem.

 

Resignation is a bit hasty just now.

[119911]

I'm 24, and was entitled to NMW from the day I joined.

 

to clarify, I currently DO receive the NMW of £6.70, however they deduct money from this wage, which takes my wage below NMW before tax/ni

 

also, my resignation is due to the series of mistakes on their part and the somewhat threatening stance they have taken to me exercising my rights to be paid what I am owed as well as the general feeling of being used as cheap labour, especially since being qualified

I am returning to college in September to study electrical installations, so will be leaving soon regardless.

Edited July 1, 2016 by 119911

[Emmzzi]

so if you ask not to be collected and dropped off will they not deduct the fuel allowance? That seems the fair trade off.

[Guest topcat14]

The minimum wage is statutory, if the your employer was visited by the HMRC NMW compliance unit, and they found that you or any other employee had been paid under the legal minimum, your employer would be forced to pay you correctly and potentially have a penalty levied against them. So to my mind you should write and demand the correct rate for the underpayment. Get the relevant payslips together, and copy them, and send them in with your letter as evidence to the Payroll or HR department.

 

The fuel situation is a little different, you say you were given notice of the policy change, there must be a reason to do this ? was it not explained why in the notice? It sounds as though they have been checking fuel expense claims and found the system was being abused. My question would be what happens if you do not use £60 of fuel in the month ? Regarding the NMW on this point - if your headline hourly gross rate of pay says £6.70 then that would be correct - but i understand the point you are making. I need more detail of the actual policy change to make an informed comment.

 

If you do resign, again your holiday pay is statutory and your employer is legally bound to pay the bare minimum 5.6 weeks a year or pro rata for part years, so this depends whether you get the minimum holiday entitlement or if there is contractual holiday pay in your terms & conditions of employment. You sound sure of your calculation of 7.5 days so if that is correct, then that is what you should be paid in your final payment.

[colin11]

i was wrong

[donarebun]

Hello.

 

I've been with my employer just shy of 12 months, I started as an apprentice and qualified not long ago.

when starting I was told I would be paid £6.50ph (NMW at that time) and would be collected and returned home by one of their vans.

 

My position is a painter ( was apprentice, no formal change of title, other than the fact I have qualified )

 

I had no problems with the firm until october last year when they failed to increase my wage inline with the NMW increase to £6.70 an hour. They did eventually around christmas time 2015. I am techincally owed the missing wages , but I didn't chase it at the time.

 

a few months ago, the company decided to deduct fuel allowances from the all employees wages of £60 per month.

this of course meant my wages dropped below NMW before tax/NI

 

there was no signed agreement , only a notice letter.

they had previously allowed employees including myself to send in fuel receipts and reimburse the fuel.

 

finally Today I have found out that they have not paid me any overtime that I have worked recently.

They haven't explained when asked why.

 

My supervisor suggests that I was in no position to bargain and I would not have a job if I start to query their decisions.

I feel that I am not respected or valued as an employee,despite putting all my effort into my job.

 

I therefore want to leave this job. however this is the first time I will have ever done this, So I am looking for advice on how best to approach this.

 

1. Can I reasonably request any money owed in underpayment during the time they paid £6.50 instead of £6.70?

 

2. Can they deduct wages taking the wage below NMW before tax and NI? If this is not allowable , can I therefore request the money be replaced to bring my wages in line with NMW?

 

3. I have calculated I still have at least 7.5 days holiday to take so far this year, can I ask for this to be paid with my final payment?

 

 

finally , how to progress with the resignation process. can I put the above requests in with the notice to leave email? or do them separately? if they are wrongfully? denied, how would I proceed?

 

Many thanks

 

Don't put in a constructive dismissal claim as it is VERY difficult to prove.

 

My advice is this; ask for all the money you believe you are entitled to.

 

See their response and then decide.

 

I believe they will pay you some back eg the increase in 2015 but some they wouldn't.

 

For those they don't pay ask them why and challenge their decision.

 

You can't suffer any detriment for NMW.

 

Anyway hold on and don't resign yet.

[reallymadwoman]

You should also be aware that if you do resign and have to apply for benefits, DWP are likely to decide you left your job voluntarily and are not entitled to anything.

[119911]

When they employed me they were aware that I did not drive, of course with being a commercial contractor, we work at various building sites across the country some local some hundreds of miles away for various lengths of time , so all supervisors have a company van which is capable of carrying 6 people inc driver. We don't pass through the office at any time, we are picked up from near each of our homes and travel directly to site.

 

originally each van had a fuel card, so none of the employees had anything to do with fuel.

that changed all of a sudden to the boys putting money in on a rota basis and submitting the receipts to the office to be reimbursed

then finally to each employee being deducted the same amount regardless of pay rate, without explanation.

for example we currently have 4 people in our van, meaning 3 are liable for fuel at £60pm however our site is less than 15 mins away from our home town. We will not use anywhere near £180 of fuel.

 

in effect my wage has been reduced to £6.30 before tax and NI. Lower than the previous NMW even.

by the time I pay tax and NI my hourly rate would equate to £5.69 take home.

 

Holiday entitlement is 28 days inc bank holidays

I calculated yesterday that 04/01/2016-04/07/2016 is 26 working weeks , which at minimum holiday equals 14.5 days.

I have taken three days leave myself and four bank holidays. 14.5 - 4 bank holidays - 3 days leave taken = 7.5 remaining days.

Is this calculation correct?

 

I dont want to resign however I will be looking to change career anyhow and I simply do not enjoy working with the people I work with or for anymore.

[119911]

I am aware of the DWP position regarding voluntarily leaving a job, however I start full time education in September regardless and will be seeking an apprenticeship for that course as of now.

[Emmzzi]

there are more costs to transporation than just fuel. Get a bicycle and ask for your £60 back.

[Guest topcat14]

"in effect my wage has been reduced to £6.30 before tax and NI. Lower than the previous NMW even.

by the time I pay tax and NI my hourly rate would equate to £5.69 take home"

 

But with respect on this point you were paying for fuel in other ways anyway - rather a mute point because we all have costs in getting to work.

 

As I stated before - as long as your payslip says.......... x no of hours x 6.70 then you do not have an argument against this.

 

I think your beef is really that because you have lost what was a benefit. I know you do not drive, but if you did would you say to your employer that you were being paid below the NMW because of the cost of your car ?

[119911]

with respect that is not how acas have seen it or advised it.

 

I was never paying for fuel, it was reimbursed when I or anybody else did.

I haven't lost a benefit, I have however had a deduction from NMW that is the issue.

IF they had paid me the full amount and I had paid fuel myself, that is acceptable and typical.

 

acas have suggested that NMW is unable to have any amount deducted other than repayments of an advance or certain other aspects

again it is deducted from our pay before it reaches us, so I do not receive minimum wage into my account.

 

yes everybody pays to commute but THEY pay that out of their at least minimum wage.

[Emmzzi]

so stop using their van to commute and you would have no issue, or at least a valid arguement.

 

you have lost the benefit of free transport to work. So, find a free way to get to work, or accept that your door to door service comes at a price. I would LOVE my commuting to cost only £3 a day!

[ericsbrother]

I disagree that it is commuting unless the transport is solely a taxi service to the yard and even then he has no company vehicle or the benefits that can be allowable on a tax form so it begs why the money appears to be counted more than once(as the van driver must suffer the same). if I worked as a milkman I wouldnt expect to have a deduction of wages fro the running of the milk float. If the OP can make it clear exactly why this £60 is taken and what he gets in return it will be easier to offer a quantifiable answer to his problem.