Companies withholding 1st week of wages

franco_22

franco_22

franco_22

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Does any one know why companies are allowed to do this and is it legal?

I know that in the US and Canada it's illegal but I just recently joined a job and I was told that the first week of my wages is going to be held until I leave.

Now I don't really understand why a company is allowed to do this, is this okay?

Basically I am letting them keep my money interest free for god knows how long, what if someone stays with them for 10 years, they get to keep that money interest free for 10 years? If this is allowed, why ? It's certainly not allowed in North America and I think it's quite appalling that a company would withhold any money due to their employees, if they need money than ask a bank like everybody else, am I wrong here ?
 
So when exactly are you getting paid first?

Are you weekly or monthly paid?

If you started, for example, last Monday and they are holding this previous weeks wages until you leave, but then they pay you next Thursday, that would be the standard week in hand.

If on the other hand you don't get paid till a week next Thursday then I've never heard of a company doing that before.
 
Jokester said:
Are you sure you're not just being paid 1 week behind, ie you get paid your first week after you finish your second?
Click to expand...

This seems to be the case, but in theory has the equivalent of what the OP is suggesting, the always hold a weeks wages.

I thought this was the norm, and was a method to ensure people worked their week's notice.
 
I would have thought that it was fine if its in your contract of employment.

From an employer point of view its sensible because people are inherently unreliable.
 
Generally been the case with most of the jobs I've been in. Maybe known by various terms depending on which part of the country you're in but I've always known it as a "lying week."
 
If you are being paid a week in arrears - that is, you are paid on Monday for the work you did last week - this is the standard. If they are genuinely withholding wages - which the OP suggests is the case - then this is illegal. However, it's a civil suit, not a theft AFAIK. This is a good reason to be in a union, as a) they would never have allowed it, and b) they would take the employer to tribunal. So it very much depends on exactly what they are up to. Knowing the way employment law favours the employer, I would also guess that if you signed a contract which stipulated this happened, you are unlucky.
 
Normal practice. It was originally because in a large firm working out the differing hours/bonuses would take time. It was all done by hand in the wages dept. With high speed computers and money usually going into the bank it really is historical now and as stated benefits firms.
 
Sorry for bumping this thread but I just found out 100% sure that the new company I'm working for is going to withhold my first weeks pay, now I am not desperate for the money and I certainly am not going to go hungry by not having it now but, is every one else okay with this?

This company employs thousands of people and I'm guessing the average weekly wages are probably around £400, so they are probably borrowing over half a million in wages from their employees interest free ?

You only get this money when you leave the company, what happens if you don't? I know people there who have been working for the same place for 15 years, I asked if you get it at the end of the financial year and I was told you don't and only when you leave.

Now, I know for a fact that this is illegal in the US and Canada, how can UK citizens be okay with these kind of practises ? This country has it's balls so tightly gripped by corporate firms already and it seems like everyday I find something new that just baffles me, I used to think the US was a push over with matters such as these but man the UK just takes the cake.
 
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