Payday falling on a weekend
Hugh Jboobs
Posts: 15,316 Forum Member
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An employee's employment contract states that they will be paid on the last of the calendar month. It also states they will be paid by bank transfer. Beyond that, the contract doesn't go into further detail.
On a month in which the final day of the calendar month falls on a weekend, because of the fact that there is a delay by the banks over the weekend, the money doesn't arrive in the employee's account until the Monday - which may be the 1st or 2nd of the new month. This occurs even though the employer did pay them on time and asked his own bank to make the transfer on the final day of the calendar month. The employer isn't attempting to be underhand in any way.
In this situation, does the employee have a right to ask/demand that on future occasions when this situation may occur, they are paid a day or two early so that their wages land in their account before the weekend? Or should they simply accept that the situation is caused by the banks and is just one of those things?
Thanks in advance.
On a month in which the final day of the calendar month falls on a weekend, because of the fact that there is a delay by the banks over the weekend, the money doesn't arrive in the employee's account until the Monday - which may be the 1st or 2nd of the new month. This occurs even though the employer did pay them on time and asked his own bank to make the transfer on the final day of the calendar month. The employer isn't attempting to be underhand in any way.
In this situation, does the employee have a right to ask/demand that on future occasions when this situation may occur, they are paid a day or two early so that their wages land in their account before the weekend? Or should they simply accept that the situation is caused by the banks and is just one of those things?
Thanks in advance.
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Don't know what the legal rights are or anything, just my opinion.
Found that. It might have something that could help.
Personally I think if your payday falls on a weekend then the company should ensure it is in by the Friday rather than the Monday which is after the agreed date.
Not me. My contract says I'm paid on the 20th or the last working day before. In practice I'm always paid on the 19th at the latest as they push the payment a day early in case there are any problems.
In my previous job I was always paid on the last working day of the month which was a pain, especially in December.
is there a word missing from the bit in bold? is that exactly what the contract states?
normally if a contract states payment is on the last day of the month, legally they have to pay you by that day. so if that day is a saturday or sunday they have to either ensure you are paid on the day, or pay you the day before. so if payment is by BACs into a bank account and the due day is a saturday or sunday or a bank holiday, in order to comply with the contractual terms they would normally have to credit your account before the due date, so on a friday if it's a weekend, or if the payday falls on a bank holiday monday then pay you the preceeding monday
have a word with ACAS about it first, then discuss it with your employer. state it's causing you a problem with direct debits etc
and on that note i would normally suggest unless you always have a healthy bank balance, it's a good idea to ensure any direct debits and standing orders are set to come off a day or two after payday so if you have any problems with your pay you have time to sort them out before you get charges and bounced payments. even if your employer and/or bank refunded charges it's still a hassle and if you get a charge refunded one in a year then they won't do it again for free for the rest of the year normally
Sorry yes there was a word missing. It was meant to say the last day of the calendar month.
It's not actually for me I ask this. Thanks vey much all, I'll pass it on to those concerned.
More likely it's the result of an oversight. Reputable employers usually have a procedure to compensate employees if an accidental late payment is made. Usually they will contact the bank to arrange to waive or cover bank charges, or pay them, and also ask employees to provide evidence of any other out-of-pocket sums so they can reimburse them.
I think we all understood that. However, your next sentence :
could be significant. Can bank transfers take place at weekends or on bank holidays?
What's happened in the past when the last calendar day fell on a weekend, which day did your pay appear on your bank statement?
EDIT : Just gone back and re-read your OP. If this is the case:
then I'd have thought the employer was in breach of contract