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taratill
taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6305
Experience:  15 years experience of advising on employment law matters
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My company plans to change our pay date. To do this they plan

Customer Question

My company plans to change our pay date. To do this they plan a transition period of six weeks between the end of October and the fifteenth of December, a six week period for which the plan to pay us for four weeks, the missing two weeks to be carried over until we leave the company. I believe this to be an unlawful withholding of wages. They are offering loans to make up the shortfall on a case by case basis. They also plan to change my contract from salaried to hourly paid. I have written to them firmly stating that I will not agree to these changes and that I believe them to be in breach of employment law and in breach of contract. If these plans are forced through, what are my options. Thank you.
Submitted: 2 years ago.
Category: Employment Law
Expert:  taratill replied 2 years ago.
Customer:

Hello my name is ***** ***** I am happy to help you today. How long have you worked for the employer for?

JACUSTOMER-h2drp5s3- : Hi jenny. Nine and a half years. I'm deputy manager of a care home and part of a large company.
Customer:

What business reason has been given for the change and how much notice of the change have you been given?

JACUSTOMER-h2drp5s3- : The company has just installed a new computerised time keeping system and the changes are to standardise the pay date throughout the company. They given about two months notice. Whilst we have no objection to a change of date per se, we do not want to be financially penalised while they do it.
Customer:

Hi the first point is regarding the notice period. An employer is not entitled to unilaterally vary the terms and conditions of your employment. This means that they cannot change your terms and conditions without adequate notice which should be at least a week notice per year of employment. I do not think you have been given adequate notice on the basis of what you say. This means that if they change without adequate notice the changes will be void and you will be able to sue them for breach of contract in the Employmnet Tribunals for your losses.

Customer:

They are entitled to change terms with correct notice but this should be done falrly.

Customer:

You should therefore not suffer a financial loss as a result of this.

Customer:

You are correct to have raised a written grievance and I hope this resolves the issue.

Customer:

If the change is forced through then you can bring a breach of contract claim if incorrect notice has been given. If correct notice is given then you can either agree to the new terms or refuse them on the basis they are unreasonable.

Customer:

If you refuse them then the contract is treated as terminated by the employer and the technical redress would be to claim unfair dismissal. Obvioulsy this is something you will want to avoid if at all possible.

JACUSTOMER-h2drp5s3- : Thanks jenny. If we do suffer a financial loss because of their plans, can you confirm that they would be in breach of employment law, which as far as I can tell states that an employer can only not pay you what they owe if it is required by statute, ie tax and NI, or if you agree to it in writing, or there is a provision in your contract to allow it.
Customer:

Hi it depends on whether the new contract is introduced correctly or not. if it is introduced without correct notice there is a breach of contract. If it is introduced correctly then there may not be a breach of contract but this may not make it reasonable. The employer is not adhering to good employee relations in making you take out loans for the shortfall.

JACUSTOMER-h2drp5s3- : One final point jenny. There is no mention in any of the information sent to us by the company that what they want to do constitutes a change in our contracts, which it clearly is. Must they inform us of this, and send out new contracts to sign (or not) before their plans are put into action.
Customer:

Yes a change in payment terms is clearly a change in terms and conditions. You should have been informed of this and consulted with and issued new contracts to sign.

JACUSTOMER-h2drp5s3- : Thanks for your advice Jenny.
Customer:

No problem, please do remember to rate my answer and come back to me in the future if you need to. All the best with this.

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