I wish to change the pay frequency of certain employees. Our company currently has a mixture of weekly, fortnightly and monthly paid staff. Due to staff shortages in our finance department, we are proposing to move the fortnightly paid staff to monthly payroll. This has raised a few issues for us: (a) is it necessary to get each and every one of the staff members involved to agree to the change? (b) do we need to get agreement at all or is it enough to simply inform them of our intention to make the change? (c) can staff resist the change being made?

Posted in : First Tuesday Q&A ROI on 2 September 2015
Issues covered:

Whether or not it is necessary to have each affected employee agree to the proposed change to pay frequency will depend on the underlying contractual documentation. In this respect, the staff handbook or the employees’ contracts may reserve to the employer a discretion to vary the pay frequency. If there is such a contractual discretion, then a simple communication could be issued to staff advising them of the proposed change to pay frequency. In the circumstances, I would suggest that employees be given a reasonable period of notice of the implementation of the proposed change in order that they may adjust direct debit payments and standing orders from the personal bank accounts, as

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Back to Q&A's This article is correct at 02/09/2015

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