Pay Issues

Issues with pay are one of the most common types of disputes that occur between an employer and an employee. They can include; issues with notice or payment in lieu of notice, sickness or holiday entitlement or accrual, as well as claims of unlawful deduction from wages.  

Notice & Payment in Lieu of Notice 
If you have worked for your employer for more than one month but less than two years, you will be entitled to at least one week’s notice if they want to end your employment. After two years, you are entitled to one week’s notice for every complete year of service, up to 12 weeks, although often your contract may allow for more. Employers may choose to pay you in lieu instead of notice, which means that you will still get paid but may not be required to work. 

Unless you are dismissed for Gross Misconduct, you will still be entitled to receive notice or payment in lieu of notice.

Sickness pay
Most employees are entitled to receive Statutory Sick Pay from the 4th day of their absence. This is paid at the statutory rate set by the Government. Some employees will be entitled to additional sick pay, sometimes called ‘contractual sick pay’. This is where you are paid in full or in part for the time you are ill. You should check your contract of employment to see whether this applies to you or not.

All workers are entitled to receive 5.6 weeks paid holiday per annum, to be paid at the normal rate. You should not lose out on money just because you are taking a holiday. You should be allowed to take this holiday, and employers are generally not allowed to pay you for untaken holidays at the end of the year. In some circumstances, you will be allowed to carry your holiday onto the next annual leave year. This is usually if you have been off work through ill health or maternity leave for a long period of time.

The one time you can receive payment for holidays you have earned but not taken is when you leave your employment. If you leave your job having taken more holidays than you had earned, then your employer can make a deduction. These payments or deductions are usually resolved in your final salary.

Employment Tribunal
If you are owed any money by your employer, you are able to utilise the employment tribunal in order to recover it. You must bring a claim within 3 months of the money being owed to you. For more details on how this process works, visit out Employment Tribunal section. 

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