Moving pay to 6 weeks in arrears

clarity123

Thanks for your help. I am probably missing something but the issue for me is not necessarily the pay date - although I see 10th as a really strange one as it’s neither close to the beginning of the month and far from the end of the month which creates problems for financial management. The issue for me is that it is pay in 6 weeks arrears. If it was a pay date change then during the transition the company would pay from 1st - 10th of month on 10th and then from then on pay monthly on 10th of following month and onwards. Instead the company are not doing that. They are making final pay check under old scheme on 28th of March, and then not paying at all in April and then making the payment for time worked between 1st - 31st April on 10th May. Effectively the company is withholding monthly pay for an additional two weeks - this is what I can’t get my head around as it seems completely unethical to do this. Especially in such a low paid sector and especially when the company has very strong financial position. Am I just missing something? Thank you all for your help!

General_Grant

clarity123 said:

Thanks for your help. I am probably missing something but the issue for me is not necessarily the pay date - although I see 10th as a really strange one as it’s neither close to the beginning of the month and far from the end of the month which creates problems for financial management. The issue for me is that it is pay in 6 weeks arrears. If it was a pay date change then during the transition the company would pay from 1st - 10th of month on 10th and then from then on pay monthly on 10th of following month and onwards. Instead the company are not doing that. They are making final pay check under old scheme on 28th of March, and then not paying at all in April and then making the payment for time worked between 1st - 31st April on 10th May. Effectively the company is withholding monthly pay for an additionIal two weeks - this is what I can’t get my head around as it seems completely unethical to do this. Especially in such a low paid sector and especially when the company has very strong financial position. Am I just missing something? Thank you all for your help!

Ignoring what happened before, the employer is paying 10 days after the period to which is refers.
If they need a week to ensure that they pay everything that has been earned in a month correctly, then it suggests very complicated calculations or not enough staff to process promptly.  If I recall what you said earlier, it is probably the latter.
I don't think it's actually unethical as long as they get the pay right and recipients are aware of when they will be paid.

clarity123

clarity123 said:

Thanks for your help. I am probably missing something but the issue for me is not necessarily the pay date - although I see 10th as a really strange one as it’s neither close to the beginning of the month and far from the end of the month which creates problems for financial management. The issue for me is that it is pay in 6 weeks arrears. If it was a pay date change then during the transition the company would pay from 1st - 10th of month on 10th and then from then on pay monthly on 10th of following month and onwards. Instead the company are not doing that. They are making final pay check under old scheme on 28th of March, and then not paying at all in April and then making the payment for time worked between 1st - 31st April on 10th May. Effectively the company is withholding monthly pay for an additionIal two weeks - this is what I can’t get my head around as it seems completely unethical to do this. Especially in such a low paid sector and especially when the company has very strong financial position. Am I just missing something? Thank you all for your help!

Ignoring what happened before, the employer is paying 10 days after the period to which is refers.
If they need a week to ensure that they pay everything that has been earned in a month correctly, then it suggests very complicated calculations or not enough staff to process promptly.  If I recall what you said earlier, it is probably the latter.
I don't think it's actually unethical as long as they get the pay right and recipients are aware of when they will be paid.

Thanks for this General Grant, but do you think it becomes an ethical point, for example the company I work for sells goods and gets payment at point of sale, but yet it pays its workers late? And if a company, say, made you work from 1-31st of month 1 but then paid you 28th of month 2 for example for month 1, then the arrears thing becomes a point of ethics at some point? Really appreciate everyone’s input!!