Oct 22nd, 2009 by paymaster
It is a common question asked as to how a company goes about changing pay frequency.
The easiest part is the bit done by the payroll software as all you need to do is reset the employee to the new pay frequency and update their Standard/Normal pay to reflect the new frequency.
The hard part is that you have to get your employees to agree. Changing pay frequency is possibly a change of the employees contract conditions so you must negotiate the change in good faith, and obtain the employees written approval to the change.
The other issue you will face, if moving from weekly to fortnightly or fortnightly to monthly is the financial impact it can have on your staff. They may have to adjust automatic payments with their bank and in some cases you may need to advance money to your staff to get them through the first frequency change.
Tags: advance pay, pay frequency
Employers
Changing Pay Frequency
Oct 22nd, 2009 by paymaster
It is a common question asked as to how a company goes about changing pay frequency.
The easiest part is the bit done by the payroll software as all you need to do is reset the employee to the new pay frequency and update their Standard/Normal pay to reflect the new frequency.
The hard part is that you have to get your employees to agree. Changing pay frequency is possibly a change of the employees contract conditions so you must negotiate the change in good faith, and obtain the employees written approval to the change.
The other issue you will face, if moving from weekly to fortnightly or fortnightly to monthly is the financial impact it can have on your staff. They may have to adjust automatic payments with their bank and in some cases you may need to advance money to your staff to get them through the first frequency change.
Tags: advance pay, pay frequency
Posted in Payroll Comment