Work withholding almost entire pay packet

[bank_robber]

Hi Everyone.

I hope someone can help me here. I have recently got a new job and I informed the company I was leaving. I have a loan from the company at 0%.

They are now demanding the remainder of this is paid back immediately (ie before I leave) Now if it was a relatively modest sum, I could understand this. However it is over £1700. Now the problem is that it would leave me with less than £600 to live on for the month. In other words, I couldn't even pay the most essential bills, let alone afford to eat or travel to my new job

Now I did sign a form saying that I would repay it if I left, but to take almost an entire pay packet in one month is not really cricket is it.

Now I told them I couldn't give them all the money up front, but I was prepared to pay 50% up front and deal with the remainder in a reasonable manor.

They said this was totally unacceptable and that it WILL be taken from my pay packet unless I find the cash to pay it off.

It was even suggested that I get another credit card to pay it off. To add insult to injury, my boss was told to speak to me about it. IE PAY US

Basically, the undertone is that you will pay one way or the other. I am beside myself with worry. I even stayed in all weekend to try to save cash in case they did.

I am that angry I may well take this further.

So can anyone give me any advice on this ?

[gadgetgirl79]

Originally Posted by bank_robber

Now I did sign a form saying that I would repay it if I left

Just to clarify, you applied for a new job, got offered it, handed in your notice, and now the company you currently work for want you to pay back a loan that you signed to say you'd pay back should you leave?

I'd say given the loan is 0%, then having to pay it back upon leaving is fair enough.

Originally Posted by bank_robber

Now the problem is that it would leave me with less than £600 to live on for the month

If it's a loan for £1700 and if they deducted this from your salary, then you must earn £38k p.a before tax. Are you sure you have no savings??

[Sidewinder]

Sadly I don't think that you have sufficient grounds to argue as they have your signed agreement to withold the money and I don't think that there are any circumstances under which you could force them to reconsider.

This is a contractual agreement and unfortunately they hold the right to enforce it.

[chasin sunsets]

I Agree. Same here, I have a loan for a laptop through the company on 0%. If I left, I would have to pay the full balance remaining.