The effect of a change in employee cut-off date for a salaried role

employee2002

My employer has recently changed the employee cut-off date for our payroll but our pay date has stayed the same. So instead of the month running from 1st of the month until the last working day of the month (and then also paid on the last working day of the month), it now runs from 1st to 25th of the month to give my employer more time and prevent overpayment in certain cases.

I'm in a salaried role but we have multiple employees on hourly pay (but paid on a monthly basis). This obviously has affected staff on hourly pay during the changeover month for the pay cut off adjustment but I didn't think the adjusted pay cut off dates would effect my salary during the changeover month. However, it seems I have been underpaid for the changeover month. When I questioned this my employer confirmed that the underpayment is correct. I wanted to check that this was indeed the case or if there has been a mistake made? As a salaried employee, should my pay have been reduced to reflect the shorter monthly timeframe during the changeover month (and then back to normal thereafter). I feel like it isn't correct (but happy to be told it isn't and why this is the case). I'd assumed I'd get paid the same because month-to-month I'm paid the same amount no matter the number of days in the month - like any normal salaried role.  If it is incorrect could anyone advise on what I need to be saying to my Director to back this argument up? In case it is of relevance when providing help, for the changeover month payslip there is no overtime pay, bonus or deductions for sick pay - just my basic salary.

Any help on this would be greatly appreciated! TIA.

comeandgo

You would have a reduced pay for one month due to you only being paid from the 1 st the 25 th.  Following month from 26 th to 25 th so full month then.

Marcon

employee2002 said:

My employer has recently changed the employee cut-off date for our payroll but our pay date has stayed the same. So instead of the month running from 1st of the month until the last working day of the month (and then also paid on the last working day of the month), it now runs from 1st to 25th of the month to give my employer more time and prevent overpayment in certain cases.

I'm in a salaried role but we have multiple employees on hourly pay (but paid on a monthly basis). This obviously has affected staff on hourly pay during the changeover month for the pay cut off adjustment but I didn't think the adjusted pay cut off dates would effect my salary during the changeover month. However, it seems I have been underpaid for the changeover month. When I questioned this my employer confirmed that the underpayment is correct. I wanted to check that this was indeed the case or if there has been a mistake made? As a salaried employee, should my pay have been reduced to reflect the shorter monthly timeframe during the changeover month (and then back to normal thereafter). I feel like it isn't correct (but happy to be told it isn't and why this is the case). I'd assumed I'd get paid the same because month-to-month I'm paid the same amount no matter the number of days in the month - like any normal salaried role.  If it is incorrect could anyone advise on what I need to be saying to my Director to back this argument up? In case it is of relevance when providing help, for the changeover month payslip there is no overtime pay, bonus or deductions for sick pay - just my basic salary.

Any help on this would be greatly appreciated! TIA.

I trust future months will run from the 26th of the month to the 25th of the following month, to give you a full month's salary?

There are a couple of issues here: (a) what exactly does your contract say about payment; and (b) if the employer's proposals change your terms of employment, was there proper consultation/notice? Making such a change without proper notice could be a serious difficulty for anyone who suddenly finds they have the same amount of month, but some 25% less pay during the changeover period.

employee2002

comeandgo said:

You would have a reduced pay for one month due to you only being paid from the 1 st the 25 th.  Following month from 26 th to 25 th so full month then.

Ah OK so it is correct then? Even though our salaried pay day is still the last day of the month? I guess it just means we're just a week in hand going forward. Thanks so much for your help though. 

penners324

It's nonsense.

As a salaried employee you get 1/12th of your salary. Doesn't matter when they cut off.

Company trying to save cash?

TBagpuss

penners324 said:

It's nonsense.

As a salaried employee you get 1/12th of your salary. Doesn't matter when they cut off.

Company trying to save cash?

No it's not, even for salaried employees there may be adjustments for things such as unpaid leave, SSP etc. The change is that the payment covers the period up to 25th - in the changeover month they get paid for part of May in June, when before they would have been paid it in May - - it doesn't affect the over all pay but does mean that when their employment ends they may catch up - e.g. if you left on 30th, since your pay is now calculated from 25th-5th you'd get paid that last week either as a higher payment in the last wage packet or as a one off payment the pay day after you finished working .

It will be easier for them administratively to have everyone on the dame timescale even though it's more critical for those on variable or hourly pay, no reason to assume they are short of money or have any ill intent, and it wont make any difference moving forward.