Money Problem: ‘My bullying boss is withholding a month’s pay after I refused to work my notice – is this allowed?’

Every Monday in our Money blog, we get an expert to answer your financial problems or consumer disputes. This week, a reader questioned if their boss’s decision to withhold her final weeks of pay was allowed.

A reader called Zippy asks: “I refused to work my two weeks’ notice due to bullying at work by my manager. Now he is refusing to pay me for my last four weeks of work because of my refusal. Is he allowed to do this?”

We asked Antony O’Loughlin, head of litigation and a director at Setfords solicitors, to take this query, and he said the simple answer is no.

No employer can withhold pay simply as “punishment”, he says.

Antony adds: “Even if your manager feels that he should not pay your two weeks’ notice period (which you could potentially challenge if the bullying you mentioned constitutes unlawful harassment) you have an absolute right to be paid for the work you have done.

“So, withholding four weeks’ worth of salary is very unlikely to be unlawful.

“If you want to pursue this you could start by contacting your employer (perhaps someone higher up than your immediate manager, if that’s possible) and requesting that they pay you for the work you’ve done or make a payment in lieu of your notice period, failing which you will raise a formal grievance.”

Antony says there is also the option to use the early conciliation process at ACAS, which is a free service for employees to try and resolve issues with their employers.

Through the service, ACAS will talk to both the claimant and the respondent about the dispute and give them a chance to come to an agreement without having to go to tribunal.

“If all of this fails you may have potential claims you could bring in an employment tribunal or court for harassment and breach of the terms of your employment contract,” Antony says.

“It’s always good to put everything in writing and keep all evidence of your communications with the company.”

Read more Money problems:
‘My workplace wants to pay us by the minute – is this allowed?’
‘Should I top up my national insurance and could it get me £6,000?’

What about payment for the notice period?

The employer would ordinarily be able to withhold pay for any period where their employee has refused to work – but the alleged bullying and harassment is a “complicating factor” here, Antony says.

“If the employer is sensible, they will understand the risk of a potential harassment claim (assuming the alleged bullying is sufficient to constitute unlawful harassment) and may agree to a payment in lieu of notice (PILON) for the two-weeks’ notice period.”

Antony continues: “The employer could try and defend any claim for the notice pay on the basis that no work was done (if they wanted to deny liability for bullying or harassment).”

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