Employers' responsibilities: late payment

[WelshCerys]

Help! My husband and I have the same employer - a large county council. Because of a cock up in payroll, a good number of us part-time tutors haven't been paid this month. Spoke to payroll who said that there is no-one in Finance today to authorise emergency payments (all signatories at a conference!!) and so no payment till Wednesday next week, earliest.

We rely on this money - mortgage, bills and are now having to negotiate with the bank, creditors etc. Also stopping a cheque and paying my credit card instead with the financial consequences.

Payroll didn't know if they would/could reimburse bank charges because of the clerical error that took place. Further, there will be no pay advice this month - will be consolidated with next month's. I believe that pay notification is one of the contractual obligations I have with them - in the terms and conditions. I've phoned my Union and ACAS - both say as this is breach of contract, could pursue through civil courts but clearly an "amicable" arrangement is best - ie they cough up bank charges arising from this breach.

But what of the financial implications of not being able to meet a mortgage (my DDs are set up with pay day in mind) and stopping a cheque and using a credit card, instead - and even if I could move the mortgage payment date once, interest kicks in.

So far, a most cavalier attitude from payroll and my local office - they are behaving as though this is pin money. It's not - it's my modest salary on the basis of which I do my financial planning to keep out of debt.

Any thoughts? Many thanks!

I suggest contacting your bank immediately, explaining the situation (they can see you are regularly paid) and arranging a temporary overdraft facility big enough to cover any DDs, mortgage payments and cheques until next Friday. That way you will incur overdraft charges but you will contain the problem, won't have to cancel cheques, go into arrears on the mortgage or use your credit card. The overdraft charges I would suggest you try billing to your employer if the advice you have is that they are in breach of contract.

My company has a slightly erratic payday practice and it can be anything from the 18th to the 24th of the month. I tackle it in two ways... first with a standing overdraft arrangement (which is not used for any other purpose) and second with a 'buffer' amount in a savings account with the same bank. This I can transfer to cover any small expenses if payday is a little late and it prevents me going overdrawn.

Good luck

Thanks! This is very helpful.
Food for thought about how to arrange finances in future.

Employer denying breach of contractual agreements (one of which is, of course, to pay me) and unlikely to refund bank charges but I will ask.
The worst thing, probably, is the lack of explanation/apology - I can't believe that full-time, senior officers would be treated thus if their details had been left off the payroll.

ACAS advised that of course lumping this month's salary with April's has tax implications because it'll appear as a higher monthly salary and because we'll be into a new tax year. What is not acceptable is that the employer will not give us a pay advice for this month (section 8 Employment Act states this is a necessity) - any salary will be classified as 'advance payment' and put appear on the April pay advice. This can't be right but head of payroll assures me that all legislation and guidance is adhered to.

Will write, will re-organise things and, again, thanks for the support.

The timing is particularly poor. Wednesday is still only March 30th, however, so, with a bit of luck, it shouldn't knock on into the next tax year. What's very odd is that an entire finance department chooses the end of March to disappear. Mine may be slightly erratic but they are positively obsessive about getting everything paid and all expenses tidied away in time for the start of the new financial year. A conference would throw them into a tail-spin

On the overdraft fees, if you make an overdraft arrangement, you will only be charged for a few days if your payment turns up on Wednesday as promised. Good luck

This is not acceptable. You will pay additional National Insurance because the March NI-free amount of £476 will be lost - this will cost you up to £52.36. You will also pay an additional 1% NI on the whole of the amount you are due for March because it will fall in the new tax year.

So unless they are going to add a gross amount of £77 plus 1.47% of the March payment to what they pay you in April, you have been short changed.

You will also lose out on your tax allowance for March and will have to claim this back from HMRC - if your tax code is 674L this will cost you another £112.

You should also receive your bank charges grossed up at 147% to pay for tax and NI.

Of course this is a breach of contract.