Can.employer force me to pay salary into specific banking institution?

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swishykazzea
swishykazzea Posts: 1 Newbie
in Employment, jobseeking & training
Hi All (very long member of MSE but wouldnt recognise me so needed to set up a new account - grrr)

Basically my other half has just got a new job with a specific bank and they appear to demand you open an account with them to have your salary paid into. Surely you have the legal right for it to be paid into an account at a bank YOU choose?

Its common sense but just wanted to know if anyone knew if there was any legal stuff to back the common sense approach?

Thanks :)

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  • Masomnia
    Masomnia Posts: 19,506 Forumite
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    I thought this was being phased out but yes it's normal for banks to require that you have an account with them to have your salary paid into. I'm told that employees of the Bank of England used to have to have an account with them, interestingly enough.

    It's a faff having to transfer the salary into the main account with the current bank but that's what he'll have to do I'm afraid if he wants to keep the job.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • TELLIT01
    TELLIT01 Posts: 16,489 Forumite
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    It was certainly required when I started working for a bank although that was some years ago. They did all the work in setting up the account and all I did was set up a standing order to transfer the money to my normal account. If they were trying to say your other half could only have accounts with them it might be different.
  • tacpot12
    tacpot12 Posts: 7,972 Forumite
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    I've found that having a second current account is actually quite handy at times.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • ACG
    ACG Posts: 23,728 Forumite
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    I have worked for RBS/Natwest and Co-op bank and both required you to open a bank account with them.

    However, I do know that when I worked for RBS (12 years or so ago) someone did not open a bank account straight away and their wages were set up to go in to a different account and after that it was overlooked. So you could maybe try and say there was nobody available to open the account when you went in so you will try again next weekend or whatever in the hope something similar happens.

    When I worked for Co-op I just transferred my wages into my RBS account. It was not really a major problem. If it is part of the contract then it is as important as how many days holiday you take and everything else in the contract.
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  • gettingtheresometime
    gettingtheresometime Posts: 6,911 Forumite
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    When I worked for Natwest many moons ago you had to open up an account with them to have your salary paid into ...but there was no barrier to you having a 2nd account with a different bank and transferring your salary into that.


    You also had to manage your account properly and if you went overdrawn you got called into the managers office .........
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Did it not say this anywhere when he was applying?

    As I know a few banks still mention it during the application and recruitment process and get you to agree to it.
  • Undervalued
    Undervalued Posts: 8,853 Forumite
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    edited 17 January 2019 at 12:06PM
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    swishykazzea wrote: »
    Hi All (very long member of MSE but wouldnt recognise me so needed to set up a new account - grrr)

    Basically my other half has just got a new job with a specific bank and they appear to demand you open an account with them to have your salary paid into. Surely you have the legal right for it to be paid into an account at a bank YOU choose?

    Its common sense but just wanted to know if anyone knew if there was any legal stuff to back the common sense approach?

    Thanks :)

    Yes, but then bank employer has a legal right not to employ you!

    Apart from legally prohibited forms of discrimination and certain rights like the national minimum wage, an employer is free to employ who they choose and on whatever terms and conditions are agreed.

    This is no different from requiring certain standards of dress or insisting that employees live within a certain distance of their work etc.

    So similarly, whilst it is your legal right to dress in filthy torn jeans and an oil soaked tee shirt and live four hours drive away, it is the employer's right not to offer you a job.

    I have no specialised knowledge of the banking industry but I had always understood that bank employees having their main bank account with their employer was a common (maybe universal) requirement.
  • TELLIT01
    TELLIT01 Posts: 16,489 Forumite
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    Not relevant to the OP, but I've found having that separate account to be quite useful in the long term. The only payment that goes into it now is my pension from the time at the bank, everything else goes into a different account. The 'pension' account has effectively become a savings pot.
  • System
    System Posts: 178,094 Community Admin
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    Your better-half will possibly get an account with benefits for free that the public usually have to pay for, so it may be an advantage. Also, don't forget things like preferential mortgage rates etc. ;-)
  • Les79
    Les79 Posts: 1,337 Forumite
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    swishykazzea wrote: »
    Hi All (very long member of MSE but wouldnt recognise me so needed to set up a new account - grrr)

    Basically my other half has just got a new job with a specific bank and they appear to demand you open an account with them to have your salary paid into. Surely you have the legal right for it to be paid into an account at a bank YOU choose?

    Its common sense but just wanted to know if anyone knew if there was any legal stuff to back the common sense approach?

    Thanks :)
    For the sake of an easy life, I would just set up this new account and set it up to automatically transfer the money across to the desired bank account.


    Refusing to do so runs the risk of the job offer being withdrawn.
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