Ex-employer says I must pay back annual leave2024-08-02T12:05:49+01:00
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Hi!

First off thank you to whoever has created a platform/forum/place for this,

I resigned from my role and ended that day, mutually terminating with no notice period (also giving up a commission payment I was due in July), mainly due to mental health and stress but also a toxic workplace and numerous other reasons.

Yesterday I received a DocuSign containing a “Acceptance of Resignation” letter, and within this letter it outlines that I had used annual leave over the amount of accrual – they would be deducting this from the 3 days I was to be paid for July – however this does not cover the supposed amount and they have said by my contract I am bound to reimburse them for an amount – however reading through my contract I can only see clauses that cover deductions or withholding, nothing saying I agree to pay anything to the company for any reason.

I will put what I can below but any advice on whether this is just a strong arm tactic (it would not surprise me) or what exposure I may have to not paying this, or any advice on how to go back to them would be greatly appreciated – I feel from their wording of “May take this further” that they do not want to commit to saying they have coverage as I expect they don’t.

The Letter sent to me:

“You have already used 13 days’ holiday in this holiday year, which is 7 days in excess of your accrued holiday leave. You will be required to reimburse the Company for this additional leave taken and in accordance with your contract of employment, the amount owed will be deducted from your final salary. We will therefore be deducting the money from the 3 days you were employed in July, and you are required to repay a further £538.46 to the Company.

Failure to do so by Friday, 12th July 2024 may lead to further action being taken.”

Clauses in my contract relating to salary/payments/overpayments:

This is in the Holiday section

1. “We shall not pay you in lieu of untaken holiday except on termination of employment. The amount of such payment in lieu shall be 1/260th of your full-time equivalent salary for each untaken day of your entitlement. However, if we have dismissed you or would be entitled to dismiss you under clause 8 or you have resigned without giving the required notice, such payment in lieu shall be limited to your statutory entitlement under the Working Time Regulations 1998 and any paid holidays (including paid public holidays) taken shall be deemed first to have been taken in satisfaction of that statutory entitlement.

If you have taken more holiday than your accrued entitlement at the date your employment terminates, we shall be entitled to deduct the excess holiday pay from any payments due to you, calculated at 1/260th of your full-time equivalent salary for each excess day.”

This is in the “Salary” section:

“We shall be entitled to deduct from your salary or other payments due to you, any money which you may owe to the Company at any time, to include, without limitation; over-payment of salary, advances of pay or loans made to you by the Company, losses or damages sustained by the Company caused through your actions while employed. The details of the Company’s discretionary commission or bonus schemes are available on the Company intranet.”

Any advice would be greatly appreciated and/or any reassurances people with experience in this area may be able to give me.

If you require further info please let me know, thanks in advance!

Neil Quantick Changed status to publish 2nd August 2024
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