Change to payment schedule

Huxley71

The company I work for has recently been taken over.

All employees have always been paid weekly (as per our contract) and our new employer intends to implement a monthly pay schedule. He verbally informed some of us of this intention less than three weeks before what will be our final weekly pay date, others haven't been informed by him at all.

The vast majority of employees put to him in writing that they do not agree to the change in schedule. He subsequently sent an email - on Tuesday - stating that the change would be "subject to consultation" and that no changes would be imposed without "proper discussion and support"

I sent an email requesting written clarification of what support would be available and confirmation of how the first monthly pay would be calculated, payroll cut off dates, and monthly payment dates going forward.

Rather than respond to my email, my employer came in to the office - I'm front of house and was busy - and started verbally addressing my queries. He informed me that I would "only" have a two week pay gap, and so at the end of the month I would be "back to normal" and that my salary would remain the same. I acknowledged this, but explained that I wasn't questioning the total amount of pay received, but rather cash flow, given that I'm supporting two people on one (soon to be minimum!) wage.

He essentially insinuated I just wasn't understanding the maths, drew me an indecipherable diagram, told me that he had spoken to everyone else and that they were now all happy with the change and had signed to agree to it (categorically untrue) and asked me to sign there and then.

I declined. Where do I stand?!

Undervalued

https://forums.moneysavingexpert.com/discussion/6662345/change-to-payment-schedule

Where do you stand? Not in the strongest of positions I'm afraid so I would suggest nicely trying to reach a compromise with your employer.

Employment contracts are not set in stone and evolve over time. Ultimately, if your employer digs their heels in and you feel it is a serious enough issue your only option would be to resign and claim unfair dismissal (not constructive dismissal under these circumstances despite the resignation).

An employment tribunal would then have to decide if the employer's actions were lawful or not. If you win you would get some compensation but the tribunal has no power to force the employer to take you back so you would still need to find another job.

Huxley71

@Undervalued hmmm, thank you - obviously not ideal but I appreciate the info. The pay thing is one of many red flags, I can actually feel my soul withering away at the mere prospect of setting foot in the place later, but I guess my best option for now is reluctant compliance 😕

mr_stripey

what is the current pay schedule - you say weekly , so what day are you paid and when is the cut off for payroll?

What is the proposed monthly pay day going to be?

People may be able to help you understand the impact of the change. It is very likley that this will ultimately happen one way or the other so best to try and align now

It sounds as if (based on what you say) that you will continue to paid weekly for the next few weeks and then switch to monthly, with the first montly payment being approx two weeks after the final weekly payment?

But the devil is in the detail so if you can provide any more informaiton then people may be able to advise better

Undervalued

https://forums.moneysavingexpert.com/discussion/comment/81947184#Comment_81947184

I'm afraid so.

Assuming you get the correct money in the end you are only out of pocket by whatever is the cost of financing presumably a couple of weeks cash flow.

Arguably your employer would be liable of that but, in any legal dispute, you would be expected to take reasonable steps to minimise your losses. For example by either drawing on savings temporarily or, if not possible, by trying to arrange a short term planned overdraft rather than incurring punitive unauthorised borrowing costs.

If you explain the situation openly to your employer maybe they will cover that?

Huxley71

@mr_stripey @Undervalued Current weekly pay day is Friday. We'll be paid today as tomorrow's a BH, next payday will be the 24th, and thereafter the last working day of each month.

The "consultation", which was our first written notification of the change, began on Tuesday!

On balance, I don't see I have any real option other than to sign the agreement, and in a worst case scenario will borrow some money. None of it sits well with me, but I guess my principles aren't going to pay the bills.

Thank you both for your input.

lincroft1710

About 40 years ago the Civil Service decided to abolish weekly pay for the clerical/typing grades which were still so paid (some actually cash). After a month or two, all those affected got used to monthly pay direct to their bank account and life carried on as normal.

I think you will find this will happen in your case