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Hello I have been working for a company for the last 20 months. I signed a contract of employment at the beginning of November 2009. I have resigned my position with my last paid day being 31 August 2011. I will have worked for 22 months. When handing in my notice I pulled my contract of employment to check notice terms etc. I noticed that my contract had the following clause

 

"Remuneration

Your salary is currently £xxxxxx per annum payable monthly by credit transfer as detailed on your pay statement. Plus £yyyy per month in respect of the service allowance."

 

I have, for the entire period of 22 months, been paid the correct salary but the "service allowance" has been divided by 12 and paid monthly.

 

This means that according to the terms of the contract I have been underpaid by £yyyy x 22 less the 22 x £yyyy/12 (I hope that makes sense). Put simply they have paid an amount which is specified as a monthly amount in the contract as though it were an annual amount.

 

Do I have a case for breach of contract which would make consulting a solicitor worthwhile or would it just be considered to be an error in the contract?

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Nah, doesn't make any sense to me. But it's late.

If ya think they owe you money, write to them and say why. Then they'll probably write back and say they don't.

Then you'll have to sue them probably.

Not sure a solicitor's any help unless

a) you don't know if you're right or not

b) you think handling the legal bit yourself is too complicated.

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"Plus £yyyy per month in respect of the service allowance. I have, for the entire period of 22 months, been paid the correct salary but the "service allowance" has been divided by 12 and paid monthly."

Are you saying for example, you had a service allowance of say £1200 per month (£14,400 pa) but instead they paid only £100 per month ie that £1200 divided by 12 instead?

 

It would help if you used the exact figures and stated exactly what was in the contract and what you actually received. That would make it clear to us mathematical dunderheads that don't understand algebra !!!

 

If that is the case, is this 'service allowance' merely a mistake on the employer's part or is that what you actually agreed and you you merely did not realise that you were being underpaid?

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