- 24-hour Emergency Line: 0300 30 32 442
Dr X, an Associate Dentist employed since 2020, approached MDS to discuss terminating their employment contract. This was due to consistent delays and incorrect payments of their salary over the preceding 10 months.
Further investigation revealed that Dr X had been receiving incorrect payments for nearly two years. Their employer was experiencing financial difficulties, leading to delayed and partial salary payments. At this point, Dr X was owed approximately £10,000, plus an estimated £600 in interest, with the amount continuing to accrue.
Dr X’s employment contract required three months’ notice for termination. Given the ongoing issues with salary payments, MDS advised pursuing a negotiated exit strategy with the employer. Dr X was asked to provide a detailed breakdown of all outstanding payments to support this approach.
MDS also advised that if an agreed exit and settlement of outstanding payments could not be reached informally, alternative dispute resolution (ADR) would be initiated. A formal Letter Before Action would be prepared before pursuing legal judgment to recover the debt.
MDS contacted Dr X’s employer and formally addressed the situation in writing. It became apparent that the employer was in a precarious financial position, facing potential bankruptcy and insolvency proceedings.
MDS successfully negotiated an exit strategy with the employer. A Letter Before Action was issued, detailing the total amount owed, including interest and any loan arrangements. A demand for full repayment was made.
The employer agreed to settle the outstanding payments in three instalments over three months. Dr X confirmed that they had received all outstanding payments by the end of this period.
Under the Employment Rights Act 1996, employers are legally obligated to pay employees’ wages on the agreed payday. Failure to do so can significantly impact an employee’s financial security and well-being, damage the working relationship, and lead to formal legal action.
If an employee believes they must resign due to a serious breach of contract by their employer, such as consistently not being paid the agreed amount without a valid reason, they may have grounds for a constructive dismissal claim. To pursue such a claim, the individual must be legally classified as an employee and have been employed for a minimum of two years.
Do you have a salary dispute or find yourself in a similar situation? Contact MDS as soon as possible to discuss your situation, our team will support you. Call our office on 0300 30 32 442 or email or case managers at [email protected] mentioning your membership number.
Looking for medical protection? Get in touch and join our medical defence membership today!
