ChatterBank1 min ago
Employer deducting unauthorised funds from earnings
6 Answers
I have recently (3 months ago) left employment with an international firm. The job was a temp position, but they wanted 6 months service. Prior to offering a position applicants were req'd to sign a form stating there would be a requirement to pay back some costs towards training, should a temp leave within 6 months.
I was subequently very fortunate, 4 months into the contract to secure a much better job and left. I gave my contractual weeks notice, and left.
That was the last I heard from the co., until I contacted them asking why I had no documents, no official release letter, no pay for the last month of work. The docs were then sent through, together with cheque for way below what i was due. I examined the payslip and noticed a large sum of money had been arbitrarily deducted - the reference was 'training'.
I have been told by others within the company that this practice is illegal.
I have never authorised the company to remove money from my earnings. Even if they were due some contribution towards training costs, I would have thought the right process would be to pay my earnings, then take up the training costs as a separate issue.
What are your thoughts. It is a considerable amount of money, and I am aware of others who have simply left upon the day of last paycheck (no notice served) with full knowledge that this is how the company operates. However, I thought by being honourable my actions in serving the required notice would be rewarded with a sensible decision not to pursue so called training costs.
(As an aside, and ironically, it was due to the lack of adequate training, and the attendant exposure to risk that contributed to my decision to seek other work)
Thanks for any contributions...I would like to set this straight, not just for the money, but also to stand up to what I see as corporate bullying.
I was subequently very fortunate, 4 months into the contract to secure a much better job and left. I gave my contractual weeks notice, and left.
That was the last I heard from the co., until I contacted them asking why I had no documents, no official release letter, no pay for the last month of work. The docs were then sent through, together with cheque for way below what i was due. I examined the payslip and noticed a large sum of money had been arbitrarily deducted - the reference was 'training'.
I have been told by others within the company that this practice is illegal.
I have never authorised the company to remove money from my earnings. Even if they were due some contribution towards training costs, I would have thought the right process would be to pay my earnings, then take up the training costs as a separate issue.
What are your thoughts. It is a considerable amount of money, and I am aware of others who have simply left upon the day of last paycheck (no notice served) with full knowledge that this is how the company operates. However, I thought by being honourable my actions in serving the required notice would be rewarded with a sensible decision not to pursue so called training costs.
(As an aside, and ironically, it was due to the lack of adequate training, and the attendant exposure to risk that contributed to my decision to seek other work)
Thanks for any contributions...I would like to set this straight, not just for the money, but also to stand up to what I see as corporate bullying.
Answers
Best Answer
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For more on marking an answer as the "Best Answer", please visit our FAQ.Unauthorised deductions from pay are unauthorised, as you know. But this wasn't unauthorised - you say you signed an agreement. There are 2 things you could have done at the time - A) find out what deductions you were letting yourself in for. B) in the absence of doing the first, finding out before you resigned what deduction would apply. Did you do neither? Legally I'm sure that you have a case - you could start by asking for a breakdown of the costs.
it all seems above board to me, and fairly standard practice. What training did you have? Do you have any idea how much it costs to provide training? is it roughly equivalent? Im afraid if you signed something saying you agreed to the situaation then you couldnt class this as corporate bullying! also, if you have no idea how much the training costs then you cant really call it arbitary
I'm a senior HR Administrator - basically, you got what you signed up for. You signed a form stating that should you leave, you will pay for the cost of training.
Honorable or not, the company has to look after it's finances. They could have paid you the full amount, and claimed back the training costs as a separate issue, but the reality is that most companies are unable to claim a penny back from ex employees because the ex employee does a runner - ignores corresspondence etc.
There's not a lot you can do if it's the company policy - you cuold fight it but they more than likely have really good lawyers who made their contracts watertight.
Future advice - read and query everything before you sign!
Honorable or not, the company has to look after it's finances. They could have paid you the full amount, and claimed back the training costs as a separate issue, but the reality is that most companies are unable to claim a penny back from ex employees because the ex employee does a runner - ignores corresspondence etc.
There's not a lot you can do if it's the company policy - you cuold fight it but they more than likely have really good lawyers who made their contracts watertight.
Future advice - read and query everything before you sign!
-- answer removed --
Some of the above is correct, but for the company do deduct money from your wages you MUST have signed something agreeing to this. If you simply signed saying you would pay certain amounts back if you left early then they cannot, legally, deduct it from your wages.
However, it may come to the same amount, so ask for a breakdown. The amount payable back must decrease in relation to the length of time you spent with the company.
However, it may come to the same amount, so ask for a breakdown. The amount payable back must decrease in relation to the length of time you spent with the company.
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