Employer wants me to open an account with a specific bank

alanrowell

I've just been told that as part of revised T&Cs that I am required to have an account with a specific bank in order to be paid.

Is this legal? What measures can I take to prevent this? Who is responsible for any problems during the change-over period? Am I obliged to use my own time to open this account?

onlypaddy

Yes it's legal, this is common practice for banks. If they want you to do it there's nothing much you can do...

As for the rest, you should ask your employer

bengalknights

Alot of banking institutions make there employess have accounts with them RBS and barclays coming to mind, I would recommend opening the account then setting up a same day standing order to transfer your salary to your normal bank account that way nothing need be changed over.

Enfieldian

Does the OP work for a bank then? I can't see any reference to that in the post....?

onlypaddy

thats not mentioned but it's always what springs to mind when people talk about employers wanting specific bank accounts to pay wages into

Gymgenius

I guess an employer which isn't a bank would be on shakey ground.

Robert2009

30 years ago my employer decided that rather than pay us cash every Friday they would pay our wages into a bank account and for those that did not have a bank account they would open one for them at the bank they used.

Not one person thought that this was strange.

How times have changed

heloid

A large bank would save quite a bit if it paid it's 15k employees wages in to it's own accounts rather than someone else's. Them's the breaks.

exel1966

Standard practice within the financial industry is for those employers to make it part of the company terms and conditions that employees must have an account within the company in which to pay a salary, however it can't stop the employee from then immediately transferring the funds elsewhere.
It makes no difference whether this is the financial sector or not. If employment stipulates a particular bank then that's the way it is.

Billy_Bragg

alanrowell wrote: »

I've just been told that as part of revised T&Cs that I am required to have an account with a specific bank in order to be paid.

Is this legal? What measures can I take to prevent this? Who is responsible for any problems during the change-over period? Am I obliged to use my own time to open this account?

You work for Lloyds Banking Group and I claim my five pounds.:rotfl:

It's already been flagged up as an "unenforceable clause" in contract law by the Unite. Although technically they can tell you to do it - there is no practicable way of making you do it if you can't (or don't want to).

mickbhall

You know outside of the financial sector if the company revised TACs for this for current employees and one say has a CCJ and cant get new account led to sacking would this not be grounds for getting tribunal?