Overpayment of salary

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<threadtitle>Pay in lieu of accrued holidays when leaving job?</threadtitle>
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<username>ClubMan</username>
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<title>Pay in lieu of accrued holidays when leaving job?</title>
<pagetext>I'm leaving my job, and have 10 days holiday built up, does the company have to pay me for this ?
 
Re: Holiday pay ?

As far as I know, yes - see :

Annual Leave and leaving employment

It is illegal under the Organisation of Working Time Act, 1997 for an employer to pay an allowance in lieu of the minimum statutory holiday entitlement of an employee unless the employment relationship is terminated. In general, your annual leave is calculated on the basis of hours worked. If you are leaving employment, the calculation of your annual leave is done on the basis of hours worked from the start of the leave year until the date you leave employment. If you were entitled to annual leave on the basis of hours worked and had not taken this leave (or were unable to take this leave) before leaving employment, you are entitled to payment for this untaken annual leave when you finish employment.
 
Re: Holiday pay ?

Or alternatively, you just include the holiday time within your notice period, and tell them you're not going to be around for the final 10 days. If the company wants you to stick around for a while to transition to your replacement, they will probably be quite happy to pay you for the holidays instead.
 
Re: Holiday pay ?

Yeah - and as a former colleague pointed out to me years ago, payment in lieu is taxed while time taken off is not itself taxable! ;)
 
Re: Holiday pay ?

ClubMan just on your point, apologies if I am being very naive but : taxed while time taken off is not itself taxable! does that mean that one shouldnt get taxed for the income they are due for the days when they are taking holidays ??
 
Re: ..

does that mean that one shouldnt get taxed for the income they are due for the days when they are taking holidays ??

No! I just facetiously meant that the Revenue can't deduct 20% or 42% of the hours from your day off! ;) Apologies for any confusion caused...
 
Re: ..

does that mean that one shouldnt get taxed for the income they are due for the days when they are taking holidays ??

No! I just facetiously meant that the Revenue can't deduct 20% or 42% of the hours from your day off! You still get taxed on payment as normal but a relaxing day off as well is worth a lot to many people! ;) Apologies for any confusion caused.
 
Re: ..

Cheers for clearing that up, thought might have a bit of a windfall coming my way :)
 
Hi there,

My wife went back nursing in September of last year after a break of 5 years. She was offered a permanent job working every second Saturday and Sunday from 8 a.m. to 1 p.m.

She got a call from the hospital accounts deptartment yesterday telling her that they calculated her salary incorrectly and that they are going to make up the difference over an 18 month period.

We don't have a problem with this because if she was overpaid then this money needs to be paid back. 18 months seems reasonable enough to us, but we haven't found out what her take home pay will be when the adjustment is made.

Before we agree to this, is there anything we should look for from the hospital e.g. what her correct salary should have been and what they actually paid her per month?

If we find that the adjustment is taking too much from her salary can we ask to have the term increased from 18 months to 24 or 30 months?

What's the position with tax and PRSI? As she was being paid too much, wouldn't she have paid too much tax also? How would we go about finding out how much tax she should actually have paid.

Any help / suggetions / similar experience would be appreciated.
 
Your wife should contact the for advice about how much she is entitled to. She should also phone the local tax office to figure out what effect, if any, the overpayment of her salary had on her tax payments.
 
Thanks Tedd!

Thanks Tedd!

We hadn't thought of contacting the INO.
 
Re: Thanks Tedd!

Did last year’s overpayment push you into the higher tax band ? If so, you may have overpaid tax last year, which you will not be able to reclaim from the Revenue.

In this case, I suggest that you approach your employers to make good any difference, as the error was on their part not yours, and you have acted in good faith throughout.
 
Overpayment

At a minimum, I'd look for a clearly-explained written explanation from the employer showing exactly what was paid & what should have been paid, taking into account tax, PRSI & any other deductions.

You could then review this explaination with a professional adviser or even here on AAM for further advice.
 
Hi Noel,

My wife works 20 hours per month, so even with the overpayment, she remained on the lower tax band.

Rainyday, we've done as you suggested. We're just waiting to get the reply. I'll let you know how we get on.
 
Overpayment

Biggerry

She will have paid too much in pension contributions if she's a member of the hospital scheme. Deductions are usually made at X% of salary so it follows that too much would have been deducted over this time.

whocares
 
Whocares,

My wife works 20 hours per month and as far as I can remember, there was something in her contract stating that she wouldn't be entitled to "benefits" i.e. pension / paid maternity leave (we have no plans to avail of this anyway!!) for something like 18 months.

I'll double check this though.
 
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