Employees not paid on time?

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Under the terms of an employment contract, an employee is expected to start work at their designated time and the employer is expected to pay employees on a particular date.

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Payroll has a glitch, staff receive their wage one day late. It doesn’t happen often but if it does happen it can be chaos.

But, what happens if an employee states they have incurred bank charges as a result of the delay and wants you to reimburse them for the cost.

Under the terms of an employment contract, an employee is expected to start work at their designated time and the employer is expected to pay employees on a particular date. Such as the 25th of every month. Majority of employees will arrange for their personal finances to be scheduled around such date. Obviously, if there is a delay, this can cause issue but it doesn’t necessarily mean you are liable for such cost.

The employee may have already been overdrawn and recurring charges. Therefore, ask for evidence of the bank charge to help determine if the charges have been incurred by the delay.  

If the glitch is at the fault of a third party which runs your payroll, then you should insist they reimburse you.

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Roxanne BradleyLegal AdvisorRead More by this author

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