BACS / Faster Payment Receipt Ref:

BlueStream001

Hello there everybody.
I've just signed up to the MSE site forums and require some information please.

I recently switched employer and whilst there my wages arrived into my account via the trusty BACS transfer system - no problem.

With this new employer, my wages arrive into my account via the Faster Payment Receipt method.

What I'd like to know please, what's the differences between these two methods and would you say I' am legally on the new employers books as I' am not filled full of utter confidence.

I have been told that I am but this new way of transferring my wages as opposed to the BACS system has me doubting and wondering.

Your explanations would be greatly appreciated indeed.

heathrow

BACS is a three day process.

On day 1 (Monday) the employer sends your bank details and amount for payment to BACS.

Overnight on day 2, (Tuesday) BACS sends the details to your bank and your employer's bank. They receive this by 0600 on Day 2. On First Direct you can see the payment as a "pending transaction".

On day 3 (Wednesday) your bank credits your account and your employer's bank debits their account.

For Faster Payments, the employer sends money on Day 1 - it arrives at your account within two hours.

Their's no legal difference in terms of employment law. You are being paid by direct credit to your account.

Faster Payments tend to cost firms more to use. But if you have a shorter processing period between a pay period and payday and variable pay (e.g. sales comission) then it may be easier for the firm.

I have a fixed salary and my firm uses BACS.

Norscbu

it's possible you were paid this way to make sure you were paid on the day promised, that's your employers responsibility.

agrinnall

If your new employer is a small business it may well be cheaper and more efficient for them to use FPS rather than BACS DC.

System

There isn't any difference (in cost) for some businesses and no negative for you.
I would be unconcerned if that is your only issue.