Just some advice please.

I was asked to return to a previous employer in July in a managerial capacity(recruitment sector). Brief overview of what's happened:

14th December they told me no longer able to sustain my salary and wanted to instead offer me a home based role with a near 50% cut on my basic salary but a higher commission. They offered me two options of either £18k and 25% or £20k and 25%.

Obviously I was shocked and upset as didn't have any warnings, but they said they wanted to close down my department as not profitable enough but didn't want to lose me. I was then on holiday for a few days so they told me to go away and think about the options. During that meeting I was told the new role would start from 2 January but my salary wouldn't reduce until 1 Feb.

Returned to work on 19th December, met with one of the Directoes. We sat down for over an hour, discussing how it would work. Said he would get new contract and order laptop, home phone line etc.

On 20th December two Directors walked into my office and said they had now decided in my best interests to terminate my contract and would give me 6 weeks notice instead of 4 and pay until end of January. Literally had to pack up and put on garden leave.

On 21st December I emailed for a breakdown of my final salary, commission and holiday payment and got no reply.

6th January receive an email from one of the Directors saying that due to cash flow problems my outstanding money will now not be paid until end of March!

So my question is, I'm still employed until end of January, can they withhold my salary? My friend still works there and hasn't heard about anyone else not getting paid. What's happens to P45 as if I start a new job I'll be emergency taxed? Can I claim for interest for late payment? It's left me in trouble financially now as I'm still to find a new job and won't have any money coming in at all in January

There is very little that you can do until payment is overdue; and at that point you first have to serve a letter before action and give them time to pay. Probably worth doing, just so that it is done, but it won't get you your money much faster, if any faster at all.

If that doesn't get you payment then you must take legal action - through either an Employment Tribunal (free) or a County Court (a small fee which you can add to the costs). Of course, if they are genuinely going belly up you may never see any money at all.

You can claim anything you like, provided you don't expect to see it! If you have actual quantifiable losses (such as bank charges) then you can take them to court to recover the costs (or add them to your claim). Technically, you should get them, but I wouldn't hold my breath...

Hi, does it make any difference if I know all other employees are still being paid on time? My friend still works there and nobody else has been given letters stating delayed salary

Is that breach of contract, discrimination etc as I'm still technically employed?

with regard to discrimination,

are you the only female working for them in a similar capacity?

Contract wont be breached until they fail to pay you on 31st Jan unless they failed to pay you in Dec as normal.

I would get a LBA/PAP letter in on the 1st feb because I dont believe that your employer is telling the truth (not that it matters) and the thought of having to spend time and money defending a claim they know they are going to lose will make them decide they should pay up rather than fight an unwinnable battle.

I hope that you are looking for another job

I agree. And it wouldn't be discrimination even if you were the only female/ disabled/ gay/ whatever person. It would only be discrimination if the reason you aren't being paid is because you're female etc.

I wouldn't read anything into what other people have been told or not told. They haven't yet been paid either! The fact they are expecting to be paid doesn't mean they will be. And no employer drops the existing staff a memo saying "by the way, we're shoddy of money so we may not be paying you this month, or possibly next month if we can judge the figures this month" - there isn't a faster way to go out of business!

Thanks for all the replies and advice.

I spoke to acas who informed me it may be best to try and reach an agreement for payment. I have emailed saying I understand their situation but they must also appreciate that by not paying my money this month it will lead to financial hardship as I have monthly commitments etc. I have asked for a mutual agreement to try and get some money paid in January.

Acas said this would look good for me if I ended up going to tribunal, looks like I've tried to compromise and be understanding. But they are in breach of contract too if they don't pay this month.

Will see what they come back with, if I don't get a response I can then send another letter stating what action will be taken on 1 February, before starting tribunal proceedings on that date.

Personally I would use small claims procedure as it is foolproof wheras the ET takes longer and you have to get the paperwork exactly right.

Now ET will cost you nowt and the county court has a fee to pay

but you get that back along with your claim when you win.

As the money owed will be more than £650 you can use a high court enforcemet officer to collect if they dont pay up in the allotted time.

That will add another £75 minimum on their bill.

Hi, can I use small claims if they are saying they intend to honour the payment but it will be end of March not end of January, which is when it should be paid?

Hi, can I use small claims if they are saying they intend to honour the payment but it will be end of March not end of January, which is when it should be paid?

Correct.

it will take time and they may have paid by then.

In which case your fee is up the swanee.

Note tribunals are free,

you go via that because the obligatory ACAS meditation usually shakes free the issues,

and if they can pay, they probably will.

If they can't, well that is true whichever route you take.

Enforcement is the same for either court.

Thanks everyone, I shall probably have to go down the ET route as won't have money for the small claims fees.

Its now been a week since I replied to my employers email, where I acknowledged their money issues and asked if we can reach an agreement but I've not even had an acknowledgement/response from them. Shall I make contact again to try and get an agreement or shall I just sit tight now and wait for them not to pay me on the 28th and then go straight in with the LBA and ET process?

Could really do with getting some £ to pay this months bills but can't see it happening if they can't even be professional enough to respond to me.

If you were due to be paid in Dec and werent then you go stright to an ET1 claim. No point mucking about. No need for LBA because you arent suing them in the county court. As said above, ACAS will be in touch with them to see wehat it is all about and hopefully once they realise that you are going to get them money as long as they exist as a company then they will likely settle

They paid me in December but my final pay is due on/by 28th Jan (should be Friday 26th). So if I'm going ET route via ACAS I don't need to do an LBA and just go straight to ET1 Claim on 29th January?

then be ready to submit a form on the 1st feb, dont lose out because you jumped the gun.

I know of a similar situation when the employer claimed he couldn't pay on time.

The employee informed him that he was so broke that he would have to take a payday loan

The employee told the employer that he would be responsible for the interest

We all know the interest of payday loans

The employer paid immediately

I'm not suggesting that you tell a lie

Bit of an update today. Finally responded to my email. Saying they are 'disappointed it its sentiment'. 'As a sign of goodwill we decided to pay you for the whole of January instead of the contracted 4 weeks notice'. 'In light of (my) email they will honor the notice period in my contract of 4 weeks. 50% to be paid at the end of Jan, 50% to be paid at the end of Feb'. 'Consider the matter to be closed'.

Well I don't consider it to be closed. My email was only requesting a breakdown of my pay, and a request to come to an agreement regarding payment - as advised by ACAS. I don't think I was in the wrong by asking for acknowledgement.

So now they are heading their email as 'Settlement' and 'consider the matter to be closed'.

Still no breakdown of what they are paying me holiday and commission wise.

Plus looks like now I'll only get paid until 17th Jan instead of the agreed full month. Plus paying 50% Jan and 50% Feb which is still breach of contract. What do I do now?

the let them know that your employment contract says you will be paid at end of Jan and you will take any necessary action to recover any monies owed after this time and any subsequent costs including all legal and recovery costs.

They are not that broke they cant afford to pay you off, they just want to maintain a hold over you by being bullies.

Thanks so much for your support I agree they are being bullies. I'm going to draft a reply now - fed up of the stress of first not being paid, now being paid half but also not actually knowing what amount they will pay as they won't respond about outstanding holiday or commission. Oh well, I now have been offered a lovely new job starting beginning of Feb, so its onwards and upwards!

then you do your calculatuions and present them with it. Really that should ahve been done a month ago but certainly now as they have decided to hack back on what they are going to pay you

I'd already sent them three times a breakdown of what I was expecting and they didn't even acknowledge it. The first time was day after I had my contract terminated (21st Dec) then re-sent it again when they told me they wouldn't be paying me until March (8th Jan). (When they told me they couldn't pay until March they still didn't confirm my outstanding payment or what was owed)

Waited 14 days and still no acknowledgement or response so I re-sent again on 22nd Jan and that's when they finally replied saying they will now honour only my 'contracted notice period' but will pay 50/50 Jan and Feb.

I'm sitting tight until Friday 26th Jan now as that's our normal pay date, see exactly what they pay me and then I shall work out exactly what I'm still owed and go from there.

Surprise surprise - no 50% salary payment today!

My friend that works there was on annual leave today and had a call to say they are also terminating her contract due to financial problems and not to return back to the office on Monday. Verbally told her she will get paid as normal today and then next month will get her 4 weeks notice.

She is also still awaiting today's salary payment!

I haven't yet contacted them as want to wait just in case by any miracle it goes in later today. But no payment today then I shall be contacting them and ACAS on Monday to start the ET

then on the 1st feb you send a letter beofre action giving them 14 days to cough up or you fill out the ET1 form. You cant kick off before the whistle is blown, not actually the end of the month yet

Done all of your sums?

Yes sums all done and ready

After my friend hadn't been paid today (after being told this morning she would be) she has just been told they are doing payroll on Monday so will see, won't hold my breath. But I'm all ready for next step, tick tock until 1st Feb! Have a good weekend I'll keep you informed next week