Employers haven't paid worked wages from Feb/March

leetb

So at my place of work we complete shifts mid month to mid month and then get paid those worked hours 2 weeks later on the last Friday of each month.

We were due to be paid our monthly wages for 16th Feb to 15th March last Friday (27th March) however we all received an email on Thursday at 6pm to say we won't be paid our owed wages basically because there isn't enough money in the bank account (stating it is due to corona virus closing the business from 24th march onwards). We were also told they were trying to secure an extension to the overdraft and that they hoped we would be paid by close of business on the following Monday (30th).

5pm came and went with no wages. At 6pm we were given another update to say they had now secured the funds and to expect the money in our accounts over the next couple of days. When asked, the business confirmed that they could not guarantee they would be in our accounts for the 1st April (Wednesday) and also said they would not pay any charges from the bank for missed payments and that we should ring around all of the companies expecting payments from us to tell them payments would be made late and that hopefully they would be lenient due to corona.....

Unfortunately, they were not lenient and many staff members were unable to postpone payments so some had to quickly organise planned overdrafts (which carry charges anyway) and those with poor credit have had to just let the payments bounce and get charged.

We have had another message from the employer today stating that although the funds have been agreed, the bank are very busy and have had trouble processing the request quickly meaning the funds aren't yet in the business bank account, let alone on its way to us. They also said that they cannot even give us a date as to when the funds will be available.

My question is, should the business be liable to pay the bank charges/overdraft fees the staff have incurred because they have been unable to provide us with a time frame to provide our own banks as to when we can pay our debts/bills?

The situation is tough because many staff members don't even have enough money left to feed their families and certainly don't have the money to waste on bank charges that aren't their fault.  

Undervalued

leetb said:

We have had another message from the employer today stating that although the funds have been agreed, the bank are very busy and have had trouble processing the request quickly meaning the funds aren't yet in the business bank account, let alone on its way to us. They also said that they cannot even give us a date as to when the funds will be available.

My question is, should the business be liable to pay the bank charges/overdraft fees the staff have incurred because they have been unable to provide us with a time frame to provide our own banks as to when we can pay our debts/bills?

The situation is tough because many staff members don't even have enough money left to feed their families and certainly don't have the money to waste on bank charges that aren't their fault.  

Yes, subject to the individuals taking all reasonable steps to keep their losses as low as possible. For example using savings, if they have any, before incurring overdraft fees etc. So they would be claiming for whatever interest they have lost on their savings and not a larger amount for bank charges and overdrafts unless it was unavoidable.

That said, how wise it is to pursue this in the current climate may be a difficult judgement call

lincroft1710

Undervalued said:

leetb said:

We have had another message from the employer today stating that although the funds have been agreed, the bank are very busy and have had trouble processing the request quickly meaning the funds aren't yet in the business bank account, let alone on its way to us. They also said that they cannot even give us a date as to when the funds will be available.

My question is, should the business be liable to pay the bank charges/overdraft fees the staff have incurred because they have been unable to provide us with a time frame to provide our own banks as to when we can pay our debts/bills?

The situation is tough because many staff members don't even have enough money left to feed their families and certainly don't have the money to waste on bank charges that aren't their fault.  

That said, how wise it is to pursue this in the current climate may be a difficult judgement call

Agreed       .