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Help - Non Payment of Salary
#1
Hi - hopeing that someone can help me with this.
I am paid by cheque every month ( thank goodness this is almost over). My boss politely slipped the news in today that our cheques "might" bounce. I am not sure if he is being genuine or not. I do know the company is in financial difficulty. What are my rights if the cheque bounces - do I have to return to work?
He was talking about someone else who has to wait for the salary and I did point out if it was me and I was not paid on time I would not come into the office. Oh boy am I glad I am out of this soon. :wall:
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#2
Tracy ... simply deposit the cheque and then see what happens

In the end it will affect him more than you ... well, I hope so

Once you get the money simply hand in your resignation

Good luck
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#3
I am not sure of a bounced cheque status in UK. In SA a bounced cheque is not worth the paper it is written on, although you may redeposit it numerous times (inconvenience and costs each time for the person whose cheque keeps bouncing). Long hard battle to get your money out of said person/company (even if you do go the legal route).

In Germany though once a cheque has bounced, it CANNOT be re-deposited as it is a cancelled document. But that bounced cheque now allows you the rights to lay charges of fraud against the said person/company who issued it (a crime in other words), and therefore a bounced cheque here can have serious consequences.

LetÂ’s hope somebody can clear up how one is protected or not in the UK.

Then immaterial of how ones wages are paid. If they are NOT paid, does one not have legal access through your local employment/labour agency? (as in Germany you would be fully protected and represented by them "Arbeitsampt").

Good Luck and as The Duck says, first deposite the cheque and see what happens. :luck:
Hagar the Lovable (and to some the Horrible) Wink
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#4
Tracy

Deposit the cheque and see what happens. If it bounces, then re-deposit it and keep on doing this time and again. It will cost them money, but you could get lucky and get your deposit in at a time when the company gets some money paid in.

This happened to me some years ago, and the embarrasment of me having cheques and direct debits returned was awfull. If you also have some dd's etc coming off your account and possibly insufficient funds, I suggest you contact your bank and let them know of the potential situation.
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#5
A post on this Forum might help :luck:
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#6
Malcolm's advice on appraising your bank of the situation is good.

You are in a contract of employment and non payment of your salary places your employer in Breach of contract. You have the right to go to an Employment Tribunal to get your money. You can reclaim money you've lost (including the extra losses caused by you not receiving the money on time, for example, bank charges) by making a breach of contract claim.

You could also tell your boss that it is your right to petition Court to place the business into receivership for not paying their debt to you.

Good luck
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#7
Thanks everyong. I received my chq at 5pm when getting ready to leave with the comment " deposit as soon as possible". I will definatly call my bank and advise them in advance the possibility of the chq bouncing, thanks, did not think of that.

I did resign after being given my cheque. In a way I do feel sorry for the bloke, he is drowning but wants to save face.
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#8
John01 Wrote:Malcolm's advice on appraising your bank of the situation is good.

You are in a contract of employment and non payment of your salary places your employer in Breach of contract. You have the right to go to an Employment Tribunal to get your money. You can reclaim money you've lost (including the extra losses caused by you not receiving the money on time, for example, bank charges) by making a breach of contract claim.

You could also tell your boss that it is your right to petition Court to place the business into receivership for not paying their debt to you.

Good luck

Spoke to my sister in law (the solicitor) about this yesterday and she said that by giving you a cheque, knowing full well that there is no money in their account to honour the said cheque, can be construde as a form of fraud and she went on to say very much what both Malcolm and John have said - one to speak to your bank when depositing the cheque and secondly to take action against the said company should no monies be forthcoming. If you have not received your money, then there must be others who are also owed money - so that at the end of the day you have to ensure that you do have some form of 'claim' in for your money.
Always enjoy life - and remember there is always someone worse off than yourself - treat others as you yourself would want to be treated.
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#9
Tracy, I hope that your cheque has cleared by now.
If it has not and your employer goes into insolvency, under S182 of the 1996 Employment Rights Act, you may write to the Secretary of State and ask that any money owned to you by the bankrupt employer is paid to you from the National Insurance Fund.
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#10
John01 Wrote:Tracy, I hope that your cheque has cleared by now.
If it has not and your employer goes into insolvency, under S182 of the 1996 Employment Rights Act, you may write to the Secretary of State and ask that any money owned to you by the bankrupt employer is paid to you from the National Insurance Fund.


Thanks John and everyone else. Well so far it's okay, it has not bounced - yet! Luckily for me I see the money coming into the company and because we received a number of chq's on Tuesday I think we are okay. I have made sure that I am out of here as soon as possible though so that I don't have the same problem at the end of this month. I leave on Friday, thankfully. It's going to be bliss to be paid by Bac's again and on the 25th of the month. :engel:
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