Work changing payment method

[YorkshirePuddingsGreatestFan]

I get paid on the last working day of the month. Most of my direct debits go out on the first working day of the month.

I've just been informed that my employer is changing from faster payments to BACS transfer to save them money in bank charges. This means they will do the usual pay run at the month end, but it won't go into my account on the 31st July. Instead it will arrive 3-4 working days after that.

I'm screwed now as I'm struggling to make ends meet, and I won't have my salary paid in to cover everything that is due out on the 1st August. I'll now have to contact everyone and see if I can change the payment dates to a few days later each month.

AIBU thinking it's unfair to make me wait for my salary to save them money?

Have they only just told you?

If so I would reply and explain to them that this will lead to bank charges. Ask them to implement it next month.

My salary is paid by bacs and I get it same day. Hopefully you will too 🤷‍♀️

Yes we just got an email from accounts five mins before we finished this evening.

Most people have 1st of the month direct debits, so a lot left upset and worried.

Thanks that's reassuring.

Their email said it would take 3-4 days to get to my bank account.

BACS files take 3 or 4 days from submission so they are correct in what they are saying but what they ought to be doing is submitting their file prior to pay day so it lands on the right day

How? BACS is a three day payment.

Most companies will choose a pay day and just run it earlier so the money goes in on the designated day.

We pay by BACS and salary is credited on last Friday of the month. Therefore I send it to the bank Wednesday latest with Friday value date.

We’d never make people wait into the new month for their salary.

Agree.

Is there anything else going on there?

Any signs that they're in trouble?

What does it say in your contract?

If it’s going to take 3-4 days why can’t they start the payroll run on the 25th or so?

Check your contract. If it says you get paid on a certain day, then it should be with you on a certain day. Breach of contract otherwise.

Why wouldn’t they just upload the BACS file three days early? I did payroll for years and if staff were due paid on a Friday, BACS file would be uploaded
on the Wednesday afternoon.

Yes exactly this. They have to do their pay roll run earlier if they want to change to BACS, not make everyone wait an extra 3 days!

Yes this is what they should be doing. If it’s just about saving bank charges they should be ensuring you are still being paid on the same day.

I'm paid by BACS on the 27th of each month or the Friday before if it falls on the weekend or a bank holiday. The payment goes into my bank a few minutes after midnight of payday. I don't think you'll have a problem.

Echoing PP, they should set the payment up 3 days before pay day so you are unaffected. This is standard practice. Very strange if they don't.

Thanks all.

I'm not sure what my contract states. It's at work and I'm not back in until Monday.

No signs of being in trouble, but the old accountant left and we got a new one who is being super efficient and changing things. I guess this is another of their cost saving measures.

It sounds like they are just changing the process not your pay day and it's poor communication. As others have said, they'll send the Bacs request a few days before payday so you shouldn't be affected.

Change the direct debits. With a lot of bills you can phone them up and change the date. For example council tax, water bill. I’ve done it before

Agree with pp that they should be submitting the file earlier so it clears on the same day as before. I wouldn't have even told my staff about a process change like that as they shouldn't notice anything.

It's outrageous to delay payroll and a huge deal for every company I have ever worked in (I work in finance)

But presumably your employer sets the payments up three days before they are due which is totally the opposite to what the OP is being told

Unless theres been a miscommunication by the employer it sounds like it could be a big problem

Its an odd thing to do so quite possibly it has been badly communicated

It definitely said in they email that accounts will process the payment on the last working day of the month, and we'll get it 3-4 days later.

We all read it as they'll run their process on Thurs 31st July, but due to the weekend it could arrive in our bank accounts on Mon 4th or Tues 5th Aug.

That's why we were annoyed as lots of people have payments going out on 1st August, not just me.

If they need those 3 days extra to pay you then I would be concerned. All our pays are run on Monday for a Thursday payment. They should be well aware of the potential difficulty this can cause their employees.
Most contracts will specify a pay day. Changing it should be in consultation and certainly with more than 2 to 3 weeks notice. Any indication of financial issues?

Nasty and sneaky to send it out five minutes before the end of working on a Friday. May be very good reasons, even so it is unreasonable.

I'd be tempted to complain formally about that, no time to answer questions until, Monday.

Are you / many staff paid hourly on variable shifts OP, is that why they think they can't run payroll until the last day of the month?

I don’t think they can do this - I would speak to ACAS.