Earlier this month Barclays Bank found itself in a truly astonishing situation when it was ordered to continue paying a part time employee at the same rate as a full time employee.
So how did it come about? The bank discovered Mrs Keenan, who worked part time had been receiving salary at the full-time rate for a number of years. She was being paid £17,000 instead of £9,500.
Mrs Keenan had believed that she was receiving the correct salary because she had been promised a pay rise when Barclays took over her previous employer, Woolwich Building Society. Barclays asked Mrs Keenan to return the overpaid amounts.
Mrs Keenan responded by bringing a tribunal claim. The employment tribunal found that Barclays was obliged to continue paying Mrs Keenan at the full-time rate. Mrs Keenan had no actual knowledge of the mistake and could not have been expected to know about it. She genuinely thought she was entitled to the higher salary.
To avoid similar situations happening to your business, make sure your managers are trained. Our employment law training helps to eliminate risk and promote the culture of 'prevention is better than cure.
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