Company breaching contract

[DJ123]

I handed my notice into my company and my last day was on Friday 27th April. It states in my contract that wages are to be paid by bank transfer on the last working day of every month. With no notice the company has decided to issue out a cheque for my wages.
Where do i stand with the company being in breach of its contract?

[tigersaw]

The last working day of the month is today, and you no longer work for the company, so maybe thats why they have paid by cheque. Why is a cheque not suitable?

[G]

presumably it's not suitable as bank transfer allows instant access to the monies, where as a cheque has to cash... taking between 7 to 14 working days.

A lot of people set up the direct debits and bill payments for the week after pay day, If you don't have a lot of disposable or saving I guess you would struggle to meet those debits.

[G]

Personally I would just try and make do if I was you, it's not worth the effort.

The only exception I would make is if I thought the company was going under and the cheque would bounce... at which point I woul dbe banging the door down demanding a BACS payment.

[Littlepeahead]

Talk VERY nicely to the bank and they might speed clear it for you free - or at a nominal cost of £10 or so.

[DJ123]

presumably it's not suitable as bank transfer allows instant access to the monies, where as a cheque has to cash... taking between 7 to 14 working days.

A lot of people set up the direct debits and bill payments for the week after pay day, If you don't have a lot of disposable or saving I guess you would struggle to meet those debits.
Got it in one.

I am a lot more annoyed at the fact i was given no notice as to the payment method changing. If any bank charges are received during this period, i will be forwarding on the bill!

[DJ123]

Talk VERY nicely to the bank and they might speed clear it for you free - or at a nominal cost of £10 or so.
Thanks for the inside knowledge, fingers crossed they are feeling nice today!

[Littlepeahead]

If you are generally a good customer and explain that you don't wish to rack up bank charges and unpaid direct debits etc. for something that isn't your fault, that you have money but it will be clearing and can they please help with this problem they can often be quite accommodating. Especially if you have banked with them for a while and remind them what a loyal customer you are.

[600+]

Cheque clearing takes three days...never heard of "speeding up the process"

[andrewsmith]

Cheque clearing takes three days...never heard of "speeding up the process"

You can
Normally on £10k+ its 5 working days so you can do it on same day clearance

[Runako]

Well, your employment contract is the place to start. It may say, for example, cleared funds on a certain day. This then becomes a condition of your employment contract. So payment by cheque (non-cleared funds) on your normal payment date is a breach - they should have consulted you first.

BUT

The appropriate remedy is damages and loss must be forseable so it would be for you to prove that a loss was suffered and that it resulted directly from the breach of contract (i.e. late pay). You also have a duty to mitigate any loss so, for example, if you are able to arrange a temporary overdraft (which you normally can in these circumstances) you should at least attempt to do so. Do not just allow yourself to incur charges because you think you may have a claim.

Hope this helps.

[DJ123]

Runako-this is what my contract says:

Remuneration:
The Employer shall pay the Employee by bank transfer at the rate of £xx,xxx per year payable by equal monthly instalments in arrears on the (last working day) of each calendar month
In addition the Employee shall be eligible for Sales Commission attensance bonus to be paid in monthly arrears.

[Runako]

Runako-this is what my contract says:

Remuneration:
The Employer shall pay the Employee by bank transfer at the rate of £xx,xxx per year payable by equal monthly instalments in arrears on the (last working day) of each calendar month
In addition the Employee shall be eligible for Sales Commission attensance bonus to be paid in monthly arrears.

Specifies the date & method of payment, so breach of contract is clear. Under certain conditions they can alter the date but generally require unanimous agreement and notice. My guess is this is a one off and they've probably done it for practical reasons (i.e. get you off the payroll to avoid overpayment) but timed it too late give adequate notice.

Technically they're in breach but if your pay is affected by a few days, most banks will be fairly understanding as long as the cheque is banked.

Have you suffered a loss (or any anticipated loss)? Have you discussed it with your employer?

[WayneL]

Runako-this is what my contract says:

Remuneration:
The Employer shall pay the Employee by bank transfer at the rate of £xx,xxx per year payable by equal monthly instalments in arrears on the (last working day) of each calendar month
In addition the Employee shall be eligible for Sales Commission attensance bonus to be paid in monthly arrears.

It could be because you are no longer an employee on the last working day of the month, maybe anyway.

Another solution could be to ask your bank for a temporary agreed overdraft. That way your bills get paid and the charges are minimal.

[Runako]

...
Another solution could be to ask your bank for a temporary agreed overdraft. That way your bills get paid and the charges are minimal.

Hey, that's a clever idea!

You also have a duty to mitigate any loss so, for example, if you are able to arrange a temporary overdraft (which you normally can in these circumstances) you should at least attempt to do so.

[DJ123]

Specifies the date & method of payment, so breach of contract is clear. Under certain conditions they can alter the date but generally require unanimous agreement and notice. My guess is this is a one off and they've probably done it for practical reasons (i.e. get you off the payroll to avoid overpayment) but timed it too late give adequate notice.

Technically they're in breach but if your pay is affected by a few days, most banks will be fairly understanding as long as the cheque is banked.

Have you suffered a loss (or any anticipated loss)? Have you discussed it with your employer?
Potentially. I have talked to companies who i have DD set up with and delayed them until next week. Hoping to avoid any charges from then and the bank. I have spoken to the bank about an OD, waiting to hear back on that currently.
I'm going to write a letter of complaint to the FD about it happening without being given any notice.

[Runako]

Thats about right and you should be fine. They may very well respond and offer you something in view of the inconvenience caused even if you don't incur a loss so its worth doing. Good luck.