How soon should I get paid?
February 18, 2012 10:30 AM Subscribe
How soon should I be paid for work I have done?
[UKEmploymentLawFilter] The place I work is being privatised and the new owners are changing the pay schedule. Currently we are paid monthly at the end of the month, but the new employers work on a mid month cycle (15th-14th) but still pay at the end of the month. So when we start with the new employers, we will work 8 weeks but only get paid for 6, the other 2 (appear at present) to be paid at the time you leave, which could be any amount of time.
Is there any laws regarding how soon I should be paid? Can they hold on to money I have earnt like this?
The letter about this said they will set up a Hardship fund, from which we can loan money and pay back in 3 months through our wages, but we still aren't getting the money we have earnt, and our wages will be down for 3 months.
Thanks.
[UKEmploymentLawFilter] The place I work is being privatised and the new owners are changing the pay schedule. Currently we are paid monthly at the end of the month, but the new employers work on a mid month cycle (15th-14th) but still pay at the end of the month. So when we start with the new employers, we will work 8 weeks but only get paid for 6, the other 2 (appear at present) to be paid at the time you leave, which could be any amount of time.
Is there any laws regarding how soon I should be paid? Can they hold on to money I have earnt like this?
The letter about this said they will set up a Hardship fund, from which we can loan money and pay back in 3 months through our wages, but we still aren't getting the money we have earnt, and our wages will be down for 3 months.
Thanks.
This is called payment in arrears and it is common. Here's a page that describes it as normal, or at least legal, in the UK. http://www.adviceguide.org.uk/index/your_money/employment_index_ew/rights_to_pay.htm
I assume that when your organization changed owners you signed a new employment contract that specified this change, either individually or collectively. Here's a link to read about your new employer's right to renegotiate with you with some follow-up resources: http://www.direct.gov.uk/en/Employment/Employees/EmploymentContractsAndConditions/DG_10028079
posted by michaelh at 11:14 AM on February 18, 2012 [1 favorite]
I assume that when your organization changed owners you signed a new employment contract that specified this change, either individually or collectively. Here's a link to read about your new employer's right to renegotiate with you with some follow-up resources: http://www.direct.gov.uk/en/Employment/Employees/EmploymentContractsAndConditions/DG_10028079
posted by michaelh at 11:14 AM on February 18, 2012 [1 favorite]
Response by poster: I understand about payment in arrears, it is common to work a week in hand, but this is payment at an indefinite date after the work has been done.
posted by marienbad at 12:16 PM on February 18, 2012
posted by marienbad at 12:16 PM on February 18, 2012
This looks like standard arrears payment. Basically two weeks (1/2 month) pass between the end of the pay period and when you get paid. Let's put some numbers on this.
You'll work March 1 through April 14 and get paid for this work on April 30. By which time you have worked eight weeks and are only getting paid for six.
To continue, on May 31 you'll be paid for the work you did April 15 through May 14. Your pay will always be 1/2 month in arrears.
So your payment isn't at an indefinate date after the works has been done. It is two weeks after the work has be done, not just once, but every single time.
In my experience this is very common (in the US), as it allows the Payroll Department two weeks to process time cards and cut checks.
Effectively, though, you are going to miss two weeks pay. I imagine that's what the Hardship fund is for.
posted by zinon at 1:01 PM on February 18, 2012 [2 favorites]
You'll work March 1 through April 14 and get paid for this work on April 30. By which time you have worked eight weeks and are only getting paid for six.
To continue, on May 31 you'll be paid for the work you did April 15 through May 14. Your pay will always be 1/2 month in arrears.
So your payment isn't at an indefinate date after the works has been done. It is two weeks after the work has be done, not just once, but every single time.
In my experience this is very common (in the US), as it allows the Payroll Department two weeks to process time cards and cut checks.
Effectively, though, you are going to miss two weeks pay. I imagine that's what the Hardship fund is for.
posted by zinon at 1:01 PM on February 18, 2012 [2 favorites]
This thread is closed to new comments.
posted by jeffamaphone at 11:10 AM on February 18, 2012