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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
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If I am owed payments under and existing contract, and my

Resolved Question:

if I am owed payments under and existing contract, and my employer decides to change my contract to reflect a pay cut, do they still have to honour the payments owed under the old contract?
Rgds
S. Plummer
Submitted: 1 year ago.
Category: Employment Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

Expert:  Ben Jones replied 1 year ago.

Please can you tell me how long you have worked there and how long have you been owed the payments? Also, how long ago was the contract changed.

Customer: replied 1 year ago.
if I am owed payments under and existing contract, and my employer decides to change my contract to reflect a pay cut, do they still have to honour the payments owed under the old contract?
Expert:  Ben Jones replied 1 year ago.

So that I can assist you further, I will need to know how long you have worked there and how long the money has been owed to you as length of service may have some bearing on your options. Please can you also tell me how long ago the contact was changed. Thank you

Customer: replied 1 year ago.
I have worked for the company for 13 years. the payments are made pro rata, I currently work upto 200 days PA, any days under the 200 the company makes up the shortfall. This runs annually from Jan-Dec and the company is changing the contracts next month.
Expert:  Ben Jones replied 1 year ago.

I see. OK thank you, ***** ***** it with me. I am in court today so will prepare my advice during the day and get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Thank you.

Customer: replied 1 year ago.
OK thankyou
Expert:  Ben Jones replied 1 year ago.

No problem at all.

Expert:  Ben Jones replied 1 year ago.

Thanks for your patience. If there is already an existing debt under an existing contract, then that debt can remain outstanding even if your contract changes. Usually, when a contract is amended, it will only affect your rights going forward from the date of the changes. Any unresolved issues with the contract before the changes will remain live and can be pursued if necessary. You must however ensure that the changes are not made under specific conditions which state that any existing disputes are closed or resolved by you accepting the changes. So as long as no such conditional terms are included, you would be able to pursue the existing matters even after the change in the contractual terms.

This is your basic legal position. I have more detailed advice for you in terms of the options you have to take this further if they fail to resolve it, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you

Ben Jones and other Employment Law Specialists are ready to help you
Expert:  Ben Jones replied 1 year ago.

Thank you. If they fail to pay you what you are due, then it would potentially amount to an unlawful deduction from wages, which is made illegal under the Employment Rights Act 1996.

Under law, an employer can only make deductions from, or withhold an employee’s wages in the following circumstances:

{C}· If it is legally allowed (e.g. to deduct tax);

{C}· If it is to recover an earlier overpayment of wages made by the employer;

{C}· If their contract specifically allows for the deductions to be made; or

{C}· If the employee has given their explicit written agreement for the deductions to be made.

If none of the above exemptions apply, the deductions will most likely be unlawful. In order to try and resolve this, the employer should be contacted in writing, advised that this is being treated as unlawful deduction of wages and ask them to pay back the money within 7 days. Advise them that if they fail to pay the money that is owed, legal proceedings could follow.

If the employer does not return the money as requested, the following options are available:

1. Employment Tribunal - the time limit to claim is only 3 months from the date the deductions were made. To make the claim, form ET1 needs to be completed and submitted - you can find it here: https://www.employmenttribunals.service.gov.uk/employment-tribunals

2. County Court – this is an alternative way to claim and the advantage is that the time limit is a much longer 6 years and is usually used if you are out of time to claim in the Tribunal. The claim can be made online by going to: www.moneyclaim.gov.uk.

Hopefully by warning the employer you are aware of your rights and are not going to hesitate taking further action they will be prompted to reconsider their position and work towards resolving this.

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