HR advice

WhenIwasLittleBoy

just received an email from the companies finance manager stating that I as well as other senior managers would not recieve their salaries on Friday but will hit our bank account on Monday. The reason is down to a "technical hitch". I pointed out that most peoples direct debits and mortgages come out on the first of every month and that if any charges were to be incurred are they prepared to pay the charges. It now has become aparent that the company can only pay so much via bacs every month and that they had to look at the top earners to reduce the payment on Friday. Can the company do this legally or can I arrange for another method of payment to hit my account on friday?

F-Blocker

They can do an "instant" transfer (the type you pay £30 or so for when you're buying a house), or a banker's draft (as good as cash).

What's going to happen next month, as you will have already used-up some of the "allowance" paying May's salaries? This "allowance" thing sounds pretty dodgy - get your money and start looking for another job would be my advice!

Oggy Red

Good point, F-Blocker, it's going to be the same next month - and even less 'allowance' the month after and so on ....

It sounds like the company have got a cash flow problem.

nth_london_addick

Mate dosent sound too good to me. i would seriously worry about the company cash flow.

Tighten your belt mate it could all go pete tong

Covered End

Every company has a limit on their BACS payments like an overdraft limit.If it's just an admin type issue and the Bank agrees to increase the limit there could be no further problems. If the bank won't increase the limit that's like not increasing the overdraft or declining a loan.

You could ask them to make a CHAPS payment into your account, which is a payment guaranteed to be made on the day it is sent and is cleared funds. A banker's draft is not cleared and therefoere if you paid that into your account, items could still bounce due to uncleared effects.

NB I do work for a bank.

AFKABartram

I am absolutely flabbergasted.

You're a senior manager WIWLB ?????????

:-)

Davidcafc

Im lucky enough to work for Natwest, i can tell you that banks have this week introduced a faster payment process which means all payments between banks happen instantly now instead of the 2-3 working days. Otherwise Chaps payment is instant if done before 2pm :)

F-Blocker

[cite]Posted By: Covered End[/cite]A banker's draft is not cleared and therefoere if you paid that into your account, items could still bounce due to uncleared effects.

NB I do work for a bank.

I bow to your superior banking knowledge - but I was under the impression that when a draft was written and handed-over, that the money was taken from the payer's a/c. The draft is then issued by the bank (rather then the payer) and because it is drawn against the bank as a whole, it's as good as cash. Hence why when buying a car you can drive it away if you hand over a draft, but have to wait several days for a personal cheque to clear.

Henry Irving

you are a director so surely such a decision would have been made at board level and the reasons for it have been made clear. If not then I'd be asking ASAP.

Been there myself before and it's not nice as we all have outgoings to pay but well done to the bosses for taking the hit themselves and protecting the non SMT staff.

bingaddick

Cash flow problems I'm afraid. Maybe temporary but it sounds iffy to me. I sympathise but surely you can switch your payment dates by a few days without incurring any cost? I suspect that having warned you in a reasonable timeframe, thats what your company would say if you challenged them on costs.

Covered End

[quote][cite]Posted By: F-Blocker[/cite][quote][cite]Posted By: Covered End[/cite]A banker's draft is not cleared and therefoere if you paid that into your account, items could still bounce due to uncleared effects.

NB I do work for a bank.[/quote]
I bow to your superior banking knowledge - but I was under the impression that when a draft was written and handed-over, that the money was taken from the payer's a/c. The draft is then issued by the[u]bank[/u](rather then the payer) and because it is drawn against the bank as a whole, it's as good as cash. Hence why when buying a car you can drive it away if you hand over a draft, but have to wait several days for a personal cheque to clear.[/quote]

What you say is correct, however if you pay the banker's draft into your account it is still not cleared funds and your bank could bounce items until it is cleared.(Even though it is undoubted for funds presuming it isn't a forgery). However, I have to admit to that was prior to David's comments whih may mean things change as from this week.

WhenIwasLittleBoy

covered end you are spot on and I have taken your advice and it has been agreed that payment will be made by CHAPS on Friday so once again many thanks for your advice.

Henry you are right this should have been brought up earlier today and the FD has had to answer some
very awkward questions this evening

AFKA how can you be "flabbergasted" about my role within a company when with all due respect you don't know me from Adam unless u are a stalker

AFKABartram

[cite]Posted By: WhenIwasLittleBoy[/cite]AFKA how can you be "flabbergasted" about my role within a company when with all due respect you don't know me from Adam unless u are a stalker

I was joking mate, that's why i put the smiley at the end. Good luck to you, i've achieved nowt mate.

As for the payment issue, i personally would let it go if its a one-off, but if it happened again i'd ask serious questions.

DA9

Asking for a friend!

If giving the statutory notice when leaving a job, but you have one weeks booked leave the week after you intend to leave and starting a new job.
What are the advantages or disadvantages if any, of either just leaving when you said and take the weeks leave as paid up in final salary as it’s been accrued, or make your weeks leave the last working week officially but still take the leave as it’s booked and they have to give you it as paid leave, ie delay notice by a week. 

A bit of a long winded explanation, apologies but advice and knowledge greatly appreciated 

se9addick

Are they actually planning to do something during this weeks leave (holiday/staycation/wild bender etc)?

SE9toDA2

If you tax the leave by extending you end date then you have just 5 days off. 

If you just give statutory notice and request the leave is paid and taxed in you final salary then you have another 5 days pay less tax and assuming you don’t start new job to the week after you leave then also have a week off. Hence I would do the later

it would also give you the option to start new job earlier if you wanted 

DA9

se9addick said:

Are they actually planning to do something during this weeks leave (holiday/staycation/wild bender etc)?

Yes, planned day trips etc 

DA9

SE9toDA2 said:

If you tax the leave by extending you end date then you have just 5 days off. 

If you just give statutory notice and request the leave is paid and taxed in you final salary then you have another 5 days pay less tax and assuming you don’t start new job to the week after you leave then also have a week off. Hence I would do the later

it would also give you the option to start new job earlier if you wanted 

So no financial losses or gains whatever he does, it’s still either accrued  leave not taken paid in final salary or normal paid leave if included in notice period? 

Any problems or major loss of NI contributions either way?

DA9

the week off will be taken regardless, paid leave within notice period or paid unused accrued leave