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Pay in lieu of annual leave & accrued working hours during transition

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    Pay in lieu of annual leave & accrued working hours during transition

    We are a small charity with a very inexperienced board (trustees/committee of management). We have experienced a difficult 2-3 years of churn and have had a low grade employee acting up for us as manager.

    In this time the organisation has grown considerably, but we as a board have failed to bring to pass the necessary organisational restructuring required to take us forward.

    We have many grant funders and have not had sufficient numbers of staff to work on our projects. As a result the acting manager has worked excessive hours (55hrs/week normal but sometimes weeks have been as much as 85hrs). The acting manager has been paid 40 hours per week as part of her standard contract under the grant but has had to work on other grants to bring them to completion because we have not allowed additional people to be employed during this period. The acting manager has process all other staff overtime regularly but 6 months ago she gave us her overtime hours. Naturally we knew they worked long hours but it came as a shock that this amounted to £13k. All evidence is there that they have done the work, but we felt uncomfortable with the amount given the annual wage is £19k.

    Once the projects were completing the acting manager provide their annual leave and expenses.

    The annual leave has been approved and carried over for the last 3 years with all staff have had some annual leave carry over but the acting manager has more than their annual leave entitlement for the year still to take. We as a committee discussed and agreed to pay half and for half to be carried over and used this year.

    The expenses were over £1.5k and dated back well over a year back up with all receipts and records to show these were genuine. We couldn't throw stones as we ourselves were late with our expenses.

    The chair at the time who didn't agree with decisions then brought in an HR consultant who then advised and blocked all decisions we'd made to date. Stating the following-

    HR Decisions:-

    1.) It's illegal to pay an employee in lieu of holidays. We understood that we couldn't force the acting manager to take the money but thought it was the most sensible option and our employee agreed to it.

    2.) Despite agreeing in principle to pay the additional worked hours because they were in line and budget with grant funds restrictions. The HR and Chair blocked this decision and said there was no contract in place and no specific letters or emails confirming overtime would be approved. Plus the acting manager is awarding more work to themself than any other employee. True but we didn't have other options in place. And no employee asked for more additional work. Now I fear we could be in financial mismanagement as we have already reported back to the funder that we have paid the staff.

    3.) The HR said that the policy for expenses was being abused by the acting manager as they were not operating within the standard timescales. However, when we were late with expenses they were approved (all be it they are much smaller amounts).

    HR and Chair did this through informal meetings that they didn't give any warning to the acting manager about, nor opportunity for accompanyment. Upon hearing the decision our acting manager asked for all investigatory information to seek understanding of the reversed decisions. Nothing was provided. The manager repeatedly asked for mediation- but HR and Chair refused.

    Aside from that we've witnessed the Chair bully and harass the acting manager even publically and ourselves when we raise concern. It just seems so unfair.

    We recruited for a permanent manager and given the current situation and treatment our then acting manager didn't apply for the post. Now the ex acting manager is off sick. And has stated that she intends to raise a grievance and go through to Tribunal if necessary. As a result the new manager has changed the locks to the offices and email password of the ex acting manager so as to prevent them gathering sufficient evidence.

    #2
    I'm not quite sure why you've posted on this site, but I've allowed it through on the basis that we're an arsy lot with quite a lot of experience between us. There's also a fair few professionals who could offer sensible advice.

    1.) It's illegal to pay an employee in lieu of holidays. We understood that we couldn't force the acting manager to take the money but thought it was the most sensible option and our employee agreed to it.

    True. Only if the employee leaves the company can untaken holiday be paid.

    HR's function is to protect the organisation from employees and idiot managers/directors. Your consultant, in my opinion and I'm not a lawyer, has regarding the other points, opened the organisation to legal action from the employee and so failed in their duty.

    Now the ex acting manager is off sick. And has stated that she intends to raise a grievance and go through to Tribunal if necessary. In her position, I'd immediately quit and sue for constructive dismissal.

    Basic principles.
    If there was an expectation to be paid overtime, and there was no written policy against it, then the overtime is due - it is part of the unwritten contract.

    If expenses were incurred as a result of employment, then there is an entitlement to be refunded those expenses. Regardless of time scales. A debt is a debt.

    Retrospectively imposing a new HR policy is almost certainly going to be heavily frowned upon by a judge.
    Down with racism. Long live miscegenation!

    Comment


      #3
      I bet your HR consultant has cost more than the overtime amount owed already - get rid now


      Sent from my iPhone using Contractor UK Forum

      Comment


        #4
        I know I'm a cynical person, but I can't be the only person that thinks the OP here is the acting manager looking for ammunition to go back to his employer.

        The situation sounds irretrievable. Put in complaint to HR, resign (put in resignation letter that the cause is delayed payment of remuneration and expenses, and bullying), claim for constructive dismissal, negotiate a settlement, move on.
        Last edited by Paralytic; 8 November 2019, 14:19.

        Comment


          #5
          The fact that the board new that the manager was working overtime and didn't object means effectively it was approved. The manager has a good case.
          I'm alright Jack

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