Forced to move from monthly to 4 weekly pay

BLueeyeprom

we currently run two payrolls on one system, part salaried and part paid by rota, we all get paid monthly on the 28th of the month. the salaried staff are paid for the month worked and the paid by rota have a cut off date half way through the month but are paid for either four or five week worked. our accounts are processed on a four, four, five week cycle. Our payroll assistant has managed to convince our managers that we should all be paid four weekly with moving pay dates as she says we have been advised to do so by HMRC to avoid anyone being paid less than NMW (there are only 20 on salary out of 250 that it would affect so easily monitored). however to do this, the salaried staff have to fall in line with the paid by rota cut off dates, so in April we will work from the 1st to the 14th and get paid for the 2 weeks on the 19th. we will then have to work four weeks to get paid four weeks later. this means we will only have half a salary to live on until the next pay date which is going to cause a lot of the staff financial hardship. we will also be paid 13 time instead of 12 so will be getting 1/12th less each month as well. we will only see the advantage of having an extra pay date at the end of November. I am considering leaving as I personally will struggle and we have been told we have to sign to accept it as it is happening. I have voiced my concerns and have been tasked by the manager to come up with a valid reason not to change or an alternative solution- any ideas?

RPWJ

Don't touch your half pay until the 28th. Ask for an advance if you can't manage until next pay day. Live off a credit card if you're really stuck, making sure you pay it off until you get into the swing of new pay dates. Look on the calendar month with 2 pays as a bonus if you can manage to make do on 12 pays.

[Deleted User]

From the internet but might help..

“A change to the date on which an employer pays its employees will amount to a change to the terms of the employees' contracts. This means that the change will need to be agreed with the employees concerned before it is implemented. An employer that proceeds to make such a change without agreement will be acting in breach of contract, a course of action which could lead to resignations followed by claims of constructive dismissal.

An employer that wishes to change the date on which it pays employees should therefore consult all affected employees (or their representatives) with a view to reaching agreement on both the change itself and the way in which it will be implemented. If, for example, the change is from weekly pay to monthly pay, it may be appropriate for the employer to agree that, for a temporary period following the change, employees who might otherwise experience hardship may apply (within limits) for an advance on their pay.

Following consultation, if some or all of the employees involved still refuse to agree to the change, the employer may proceed to terminate those employees' contracts with full notice and at the same time offer re-employment on the revised terms. It should be made clear that the new contracts will run consecutively with the original contracts, with no loss of seniority or continuity of service. In this way, the employer will avoid breach of contract claims and, provided that it has acted reasonably throughout the process, will be in a position to defend any claims of unfair dismissal from those who decline to accept the offer of re-employment. This, of course, assumes that there was a sound business reason for the change in the first place.”

Dazed_and_confused

Don't touch your half pay until the 28th.

Smart thinking

LilElvis

BLueeyeprom wrote: »

we currently run two payrolls on one system, part salaried and part paid by rota, we all get paid monthly on the 28th of the month. the salaried staff are paid for the month worked and the paid by rota have a cut off date half way through the month but are paid for either four or five week worked. our accounts are processed on a four, four, five week cycle. Our payroll assistant has managed to convince our managers that we should all be paid four weekly with moving pay dates as she says we have been advised to do so by HMRC to avoid anyone being paid less than NMW (there are only 20 on salary out of 250 that it would affect so easily monitored). however to do this, the salaried staff have to fall in line with the paid by rota cut off dates, so in April we will work from the 1st to the 14th and get paid for the 2 weeks on the 19th. we will then have to work four weeks to get paid four weeks later. this means we will only have half a salary to live on until the next pay date which is going to cause a lot of the staff financial hardship. we will also be paid 13 time instead of 12 so will be getting 1/12th less each month as well. we will only see the advantage of having an extra pay date at the end of November. I am considering leaving as I personally will struggle and we have been told we have to sign to accept it as it is happening. I have voiced my concerns and have been tasked by the manager to come up with a valid reason not to change or an alternative solution- any ideas?

As only 8% of the staff are salaried and of these a lot (say 10, so 4%) will be adversely affected you're going to struggle to justify maintaining the current pay arrangements. Unless there is union involvement then this change is going to be implemented, whether you like it or not.

Marcon

BLueeyeprom wrote: »

we will also be paid 13 time instead of 12 so will be getting 1/12th less each month as well. we will only see the advantage of having an extra pay date at the end of November.

You aren't getting 1/12th less; more like 1/13th.

13 paydays should actually make it easier for you to budget if you're finding it difficult.

Suggest to your manager that the 20 people affected should be given an interest free company loan of 2 weeks' net pay, with 1/10th of the loan being repaid each month for the next 10 months. With only 20 of you, that rather elaborate solution should be perfectly feasible.

getmore4less

Given no one really has monthly expense cycles a move from monthly to 4 weekly should not cause big issues.

Most people have weekly, monthly, annual.

The trick is set aside the monthly and longer from the 4 week pay first then what's left covers 4 weeks.

Monthly pay it had to cover 4 and a bit weeks sometime that would also be 5 weekends.

With a cashflow analysis of the annual bills it often possible to juggle the timings of spends to make it work.

Savvy_Sue

I'm not surprised the payroll assistant has managed to convince the managers that this is a good idea, and especially as so few are salaried. Having to run two payrolls to accommodate the current system must be a nightmare, and budgeting must be a complete nightmare for those who are sometimes paid for five weeks' work and sometimes for four.

And it sounds as if consultation is taking place: you've been invited to give reasons for NOT making the change or an alternative solution. Honestly, I can't think of any good ones ...

Savvy_Sue

LilElvis wrote: »

Unless there is union involvement then this change is going to be implemented, whether you like it or not.

I agree - BLueeyeprom are you in a union? If not, now would be a good time to join.

Marcon wrote: »

Suggest to your manager that the 20 people affected should be given an interest free company loan of 2 weeks' net pay, with 1/10th of the loan being repaid each month for the next 10 months. With only 20 of you, that rather elaborate solution should be perfectly feasible.

That's a good idea for mitigating the initial effects.

I'm not surprised the payroll assistant has managed to convince the managers that this is a good idea, and especially as so few are salaried. Having to run two payrolls to accommodate the current system must be a nightmare, and budgeting must be a complete nightmare for those who are sometimes paid for five weeks' work and sometimes for four.

And it sounds as if consultation is taking place: you've been invited to give reasons for NOT making the change or an alternative solution. Honestly, I can't think of any good ones ...

maisie_cat

Once you are used to it, the "2 paydays" month is really useful and if yours is in November that's really handy for Christmas. If only a few people are adversely affected the company may give you a short term loan.

YBR

We had a number of people move the other way from 4 weekly pay to monthly. They much preferred having 13 paydays a year as they lived on 12 and paid for Christmas with the last one.

In the long term it will be fine. You just need to think clearly about the transition and suggest how the company can assist.