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Employer witholding monies on pay day after giving notice


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Hi all,

 

I wont give you my life story but I work in sales and recently decided to move jobs. I gave my notice 10 days ago and it seemed to be on good terms. It's a small business so I've been close to the boss for 3 years and was till today. Anyway, today is pay day, at 720am I receive an email stating that I wont be paid commission now that I have given my notice. I reacted in the expected way and challenged that, his response was, no no, just that cash flow is bad, we'll pay you next month, after youve left.

 

He has a history of not paying people as theyre leaving, so I'm expecting to not see this money. He has sent me a breakdown of what I'm owed, from which customers, and promising to pay that money next month (which he did to the last guy, and didnt pay). I wouldnt react this way if it wasnt 40% of my earnings. On top of that, I'm also owed 11.9 days holiday which I'm worried he'll try to get out of as the record is paper based and he signs it (however I have a copy of this up to date and signed).

 

The impulsive side of me says - Hold all of his equipment ransom i.e. laptop, phone, van, power tools until he pays what he owes me and I'll exit the day he pays. It works out as around £16-1,700 for holiday and commission :(

 

The sensible side says - Wait, and he wont pay me... By which time I'll have no leverage as I'll have given the equipment back on the 16/9 (last day) and next pay day is end of the month, can I take him to court then?

 

I've been helped out here before and really hoping someone can give me an idea of which direction to take it. At the moment Mr Impulsive is winning as I have a mortgage to pay...

 

What do you think? Please help me with this sheister, Thanks in advance too :)

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Mr impulsive is wiser.

Maybe not legally but practically.

He could end up in a Mexican stand off whereby he's not paying you until he gets hid tools back and you're not giving him the tools until he pays you.

If he's got assets and all commissions and holiday entitlement is in writing, it's only a matter of time until hd pays you (of course if you're prepared to take it all the way to court)

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I am not sure that holding on to his tools is legal, but if you have evidence that he didn't pay off previous employees, I would think that it is reasonable.

I doubt he would take you to court if he fails to pay you, wouldn't look too good.

Best case scenario is to hold his tools until he's ready to pay you, then meet in a neutral place to exchange goods/money.

When you do so, make sure you video and get him to sign a receipt

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Holding onto company property after your contract of employment has ended will be theft without permission or contractual provision..

 

You put it in writing to him by way of a 14 day letter before action with section 13 Employment Rights Act 1996 unlawful deduction of wages. When that letter before action has expired you contact ACAS

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Does your contract have the word DISCRETIONARY or anything similar in it with regards to the payment of bonuses, or any wording about employment dates vs eligibility?

 

No bonus when leaving is a really common clause.

 

Holiday pay - I'd ask for the time off myself.

Never assume anyone on the internet is who they say they are. Only rely on advice from insured professionals you have paid for!

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what exactly does it say about bonus please?

Never assume anyone on the internet is who they say they are. Only rely on advice from insured professionals you have paid for!

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It only says "salary and bonus will be reviewed annually, further details are available from the MD" elsewhere "you will have the opportunity to earn 18,500 under a bonus scheme, paid quarterly in arrears". Shame I can't add photos on my phone. I've had emails breaking down bonus/commission which do not mention notice period either.

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Unfortunately that doesn't seem to be enough to make it a contractual obligation. So I am not sure it's enough to make it worthwhile going to court.

Never assume anyone on the internet is who they say they are. Only rely on advice from insured professionals you have paid for!

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bonuses and commission are not as discetionary as many complaines think but you will nedd to be able to show that it is part of the terms of employment and that can be an implied contract as well as the written part.

So, how is the annual review done? Who gets to see the result of this review?

I would be minded to submit a SAR to your boss, ask him who he wants the statutory £10 cheque payable to and who is the company "data controller" you should send the request to.

I agree with Emmzzi on the holiday point, take any residual during your notice period, almost impossible for them not to allow it and if you get shafted on the pay front at least you havent worked those days for free.

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Hi all, just to let you know I lodged an official grievance today and I am amazed to say that he has paid it. The guy is normally very dificult so I'm sure there is something lurking aroud the corner. Thanks for the advice everyone, now to get some kind of confirmation he will pay me my worked days and accrued holiday (Ihave 10 days left to work and 12 days holiday accrued).

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