Employee Expenses

rikili

Hello all,
I am seeking legal advise, and hoping that someone could help.

I am working in a company where we get paid for our expenses including, road tolls when we travel to customers, B&B fee when we stay overnights, and fees for any tools / hardware bought for the job (Drills, drill bits, electric cables, cable ties etc...)

I didn't submit my expenses for the last 4 years due to several reasons (Being very busy with new borns etc...), but a few months ago a got my acts together, and filled up my expenses sheet for the last 4 years (all expenses documented and all receipts provided) which amounted to over 7K.

I was surprised to have the company directors delay the payments, even though when I submitted my claim, I indicated that I am not expecting them to pay me the whole lot in one payment, but over several months (I even mentioned payment over 12 months period).

I asked again, and again, and every time I was told that they will come back to me by the end of the week. Today, after 10 weeks of waiting, they finally came back, and informed me that they will not pay the money, and will only pay the expenses of the current year, and then, as a gesture of good will, they will pay last years (Which amounts to 2K).

They said the reason is that they closed the company's financial book with the revenue and can't re-open them again (that's the bit I couldn't understand. I thought that the books stay open for 6 years!).

My question is:
- Are they in the right? If so should I just take what I'm given, and forget about the other 5K.
- Or are they just fobbing me off, and I should demand the full amount to be paid back?

Thanks in advance.

coylemj

They have submitted the company accounts to their auditors who approved them and sent them to the revenue - I don't know where you got the notion that 'books' are kept open for six years. They are not now prepared to accrue those old expenses in the current year which is why there is a problem.

Most companies accrue some money in the accounts for unclaimed employee expenses so in most cases they can process claims that are in respect of last year. Your claims are clearly well outside that time period which is why they can handle the claims for last year but not for any time before that.

What is your position legally? Can't answer that but as this is between you and your employer, it's different to you claiming payment of a debt from a third party or the taxman so you will have to tread softly and IMHO you will probably have to take it on the chin and forget the claims that are more than two years old.

Victor

Potentially, the employee could write them off against their own income tax. Talking to an accountant would be useful.

Carawaystick

I'd have a look at your contract and see if there is any time limit mentioned re expenses.

Arbiter of Good Taste

Carawaystick wrote: »

I'd have a look at your contract and see if there is any time limit mentioned re expenses.

I can't see why it would be in your employment contract. Check whether there is an official expenses policy. Though, to be honest, I can see why your employer is refusing to pay. Unless they've provided for it in the accounts, there is no way they will be able to take it at this stage. Christ, even if they have provided for it, I would expect after a couple of years that they would have written it back.

In my place (large multinational) we have 45 days to claim expenses....

rob316

In my experience they are right and are even been generous paying up last year's too. It's up to you to make sure you claim for expenses in a timely fashion. 4 years that is not.

rikili

Thank you all for your replies. I knew loads of people will be commenting about how long I left it, but the thing is we were used to do this with the previous Directors, we could leave claiming expenses for 2 or 3 years. Only the new directors are refusing to pay. Also, I was looking for an actual legal advise: am I legally entitled to be remunerated or not?

I'll give you an example: half of the tools in my tool box were bought with my own money (Expenses from last 3 years). If I turn out tomorrow to work and say I can't be doing such a job today because I left most of the tools that I wasn't payed for at home. What would be the company's response? they surely will sue me for loss of revenue or whatever they can come up with, wouldn't they ?

I just wanted to know if I am legally entitled to get my money back, or not. If I am, then I will contact a solicitor, if not, then I wouldn't waste my time and my money trying to get professional legal advise.

Also to respond to Carawaystick, I don't have any close in my contract that mentions time limits for expenses.

Thanks a lot for all of you guys.

rob316

You should definitely contact your solicitor to clarify the situation. Your company may have a policy you were unaware of that new directors follow through on.
I think they know where they stand and as a gesture due to the changeover they are offering you the previous year also. They too probably sought legal advice, I know I would anyway.

Getting solicitors involved can be so messy and can sour your relationship with your employer even if they are in the wrong. Weigh up wether you can take the loss and move on against how much you enjoy your current job.

Maybe contact citizens information, they maybe able to help.

plodder

It has to be done every quarter where I work but the policy is very clear and they email a reminder before the end of each period. I think you might have a case if the policy isn't written down or otherwise communicated clearly. Generally speaking 4 years would be really pushing it though. Maybe the 2nd year is being offered on that basis. It is a genuine problem for them accounts wise. Its not like they are trying it on as such.

Mr. Incognito

There is no law in this area.

It depends on your contract and custom.

It would cost a lot more than 5K to sue them.

I think next time get your affairs in order. Hardly their fault you are literally years late claiming

For Forks Sake

Four years? Bloody hell.

If I don't have my previous months expenses in by the 12th of the next month I won't see them again (major multinational)

barneystinson

Take the 2k.

Make a claim to Revenue, for expenses incurred in employment, against your income for the years they aren't reimbursing you; if you pay tax at the high rate that'll be another 2.5k. You'll need to make sure you've all necessary documentation to hand to support that claim (might be worth paying a couple of hundred quid to have a professional prepare the claim to ensure it's all deductible).

If you can get over 4k of it back, it's a no brainer that it's not worth the cost and hassle of pursuing the rest - put it down to a valuable lesson learned.

rikili

Thank you very much every body. I really appreciate all the advise.

smcgiff, just to clarify, I wasn't looking for legal advise as such, but wondering if there's any thing in the employment law that relates to that.

Again, thank you very much for the valuable input.

Bigcheeze

The accounts issue is irrelevant. Historic accounts don't get restated over insignificant items. Sounds like they've spent weeks trying to come up with an excuse not to pay.

The only way I see this is not due to you is if you were previously given an expense policy with a time limit on reimbursement AND that policy has been consistently applied by the company. You say previous management allowed routinely allowed 2-3 years for expense claims so it sounds like no policy was enforced. Based on what you've said, this money is legally due to you IMO.

No need to go legal yet. Discuss the issue of expense policy with them first.