Quizzes & Puzzles20 mins ago
Salary Payments by Cheque
9 Answers
When a company pays salaries by cheque, are they legally bound to ensure that they are given to employees in enough time for them to clear by say the last working day of the month.....or would passing them out the day before be suffice....though not practical to the employee!!
So, if an employee has a bank that takes 10 days to clear a cheque, should the employer pay the cheque more than 10 days before or is that just the employee's fault for a having a bank like that?
So, if an employee has a bank that takes 10 days to clear a cheque, should the employer pay the cheque more than 10 days before or is that just the employee's fault for a having a bank like that?
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Thanks for that Eddie51. I'm actually asking it from the employers viewpoint, not that we'd ever wait to the last day to hand a cheque over, we do try and ensure cheques are issued in sufficient time to clear. It's just that we have one member who gets really shirty if he/she hasn't had their cheque at least a fortnight before payday!! Their bank takes 10 days to clear them, somehow!! They seem to think it's our LEGAL obligation to give a cheque out in sufficient time for it to clear, I just don't think that's the case....though we do try to!!
I am in the process of trying to switch over to BACS payments, as cheques are so out of date!!
I am in the process of trying to switch over to BACS payments, as cheques are so out of date!!
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If you change to BACS payments and use on-line banking t is possible to transfer the wages/salaries just before the payment due date. Stress to your staff that tis will be to their benefit as they wont have to queue to pay in their monies or wait for clearing. The Payments Council plan for cheques to be phased out by October 2018 although there are representations about this from small charities etc.