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Alice H
Alice H, Solicitor Advocate
Category: Employment Law
Satisfied Customers: 2850
Experience:  Partner in national law firm with 20+ years legal experience
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If you employ someone with a verbal agreement and agree one

Customer Question

If you employ someone with a verbal agreement and agree one months wages in hand this means you do not pay them for the first month that they work.
Should they leave they have to work one months notice and then you pay them for that month worked and also give them the month in hand wages also.
If they do not work there months notice are you also allowed to with hold the month in hand pay as they have not worked there months notice.
Submitted: 3 years ago.
Category: Employment Law
Expert:  Alice H replied 3 years ago.
My name is***** and I'm happy to help with you.

Was the agreed notice period one month?
Customer: replied 3 years ago.

yes one months notice was agreed

Expert:  Alice H replied 3 years ago.
I'm afraid I disagree with your understanding.

Month in hand means working one month in arrears.

Ths means the employee works a month and is then paid.

If the employees notice period is one month, he then works that further one month and is paid again.

On your analysis the employee is working two months before being paid which does not reflect the one month in hand arrangement.
Customer: replied 3 years ago.

II AM AFRAID I DO NOT UNDERSTAND YOUR ANSWER WHEN EVER I HAVE WORKED A MONTH OR WEEK IN HAND I HAVE NOT BEEN PAID THAT IN HAND MONEY UNTIL I HAVE LEFT THE COMPANY OTHER WISE IT WOULD NOT BE I N HAND WOULD IT.


I HAVE ALSO KNOWN PEOPLE WHO HAVE NOT WORK THERE


NOTICE AND THERE IN HAND MONEY HAS NOT BEEN PAID TO THEM. THIS IS WHY MOST COMPANYS HAVE THIS POLICEY TO STOP YOU FROM JUST WALKING OUT AND NOT WORKING YOUR NOTICE.

Expert:  Alice H replied 3 years ago.
An employee is entitled to his pay for the month worked. If not paid this could amount to an umlawful deduction.

In respect of working the month notice - its a contractual obligation to work a notice period. Failure to do so amounts to breach of contract. That's why most people work their notice.

You cannot make someone work their notice by witholding their wages. If you withhold their first months wages to effectively make them work their notice then this could be unal

Furthermore, unless you have the agreement in writing, the statutory notice period for someone employed less than a year is one week.

If you would like some law on this then I will obtain it for you.

Alice H and other Employment Law Specialists are ready to help you
Expert:  Alice H replied 3 years ago.
I noticed some typos in my previous answer for which I apologise.

A simple guide to pay and deductions is set out on the CAB website:

http://www.adviceguide.org.uk/england/work_e/work_rights_at_work_e/rights_to_pay.htm#h_how_should_an_employee_be_paid

You will see that the biggest difficulty you face is the fact that you have a verbal agreement without any clear agreement about how the employee will be paid, what happens on resignation AND MOST IMPORTANTLY in what situations you can withhold pay.

The word unal above should be unlawful e.g. withholding pay could amount to an unlawful deduction.