Change of Pay Date

venny_2

The company I work for told us all yesterday that they are changing our pay date from the last working day of the month to the 6th of the month, and have given us 17 days notice to change all of our direct debits and standing orders. They have not given us any choice and they have not offered any loans to tide us over. Can they do this? Is it legal? The reason is to give them a month's grace in paying HMRC and NI.

anamenottaken

venny wrote: »

The company I work for told us all yesterday that they are changing our pay date from the last working day of the month to the 6th of the month, and have given us 17 days notice to change all of our direct debits and standing orders. They have not given us any choice and they have not offered any loans to tide us over. Can they do this? Is it legal? The reason is to give them a month's grace in paying HMRC and NI.

That works once.
Dust off your CV, brush up your interview skills.

attila_

It does sound as though they have cashflow issues. Is it a small company?

If it has a HR dept. then speak to them stating your concerns etc. if its a small company have a chat with the MD (and see what's going!)

[Deleted User]

Hi,

have a look here, similar thread.

persa

Assuming you don't have a basic bank account, now is the time to make an appointment with your bank and ask for an overdraft, taking along a copy of the letter or e-mail you received informing you of the change of payment date. If you don't have anything in writing, ask management to confirm in a quick e-mail for you, as it may be more helpful having some sort of evidence with you when you talk to the bank.

If your employer is part of a big group, they may be changing the payment date to bring it in line with the other group companies. However, the more likely story is that the company you work for is experiencing cash flow difficulties, which means you have bigger things to worry about than getting paid late one month. In your shoes, I would definitely recommend looking for another job, or at the very least, ensuring your CV is up-to-date.

chrisbur

venny wrote: »

The company I work for told us all yesterday that they are changing our pay date from the last working day of the month to the 6th of the month, and have given us 17 days notice to change all of our direct debits and standing orders. They have not given us any choice and they have not offered any loans to tide us over. Can they do this? Is it legal? The reason is to give them a month's grace in paying HMRC and NI.

If I understand correctly your payday that was to be 29/2 will now be 6/3 and the one that was to be 31/3 will now be 6/4. This means that the payday that was 29/2 and is now to be 6/3 would have been in tax month 11 but is now in tax month 12. If your employer operates their payroll correctly then month 12 freepay should be used for this payday and anyone on cumulative tax code of 747L and paying tax at 20% will pay just under £125 less tax on this month's wage. They may do this as a seperate payrun so the salary for the month is normal and the extra payrun has just a tax rebate. Or they may forget about this in which case you will need to apply for the tax rebate when you get your P60. It might be a good idea to check with your employer how they are dealing with this.