scooby nutter

Long story but my girlfriend use to work at a photo developing shop.They have suddenly gone bump/all their shops are now closed until further notice,all staff have been told they are out of their jobs.

2 days after getting made redundant etc only the employees with Royal Bank of Scotland accounts get their wages and redundancy pay paid into their accounts.After visiting the bank for a statement today,the company who she worked for have taken all her wages back out!!!

People with other banks never had any money paid in to start with.

Before they were sacked they got their wages paid into their bank accounts at the end of every month.

Can the company pay them their wages/redundancy pay,then on the same day(when they must have realised)take all the wages back from your account??
I thought you needed permission to take money from someones account!!Is this legal??

We just wanted to know as we cant speak to the bank until Monday and she is very Pi~~~d off to say the least!!

Duncan

RaZe-=Buzz=-

Obviously they CAN do it...they just DID

Whether you can argue once its in your account its YOURS and get the bank to give you an eqvivalent amount is unlikely - it was their mechanism which allowed this withdrawl so they'll no doubt tell you its all above board.

Personally I think that no one should be able to take money out
without you having signed the forms to say they can.

I have no faith in any of them. I couldnt even pay a cheque IN to my own account a few weeks back 'cos some tosser messed my details up "on the computer" but people can remove money without your written permission??? Its all bollox.. keep it under the bed

scooby nutter

Cheers Raze

She will have to phone the bank on monday and give them S***!
But knowing the Bank,they will probably charge her for getting HER money back

Duncan

Mr.Cookie

has she been given a pay slip company i work for used to give pay slips out when they arrived ussually one day before money went into accounts apparently the is a law stating that employers can only take money back on the same day that they give out pay slips, prolly doesn't help much as company is bust so might not apply.

Si

Maddriver

In my experience, no its not possible. I once paid an employees pay into the wrong bank account (she gave me the wrong details) When we picked up the error the bank the money had gone to refused to give the money back until the account holder had given permission.

On the other hand the transfers are often over several days (the ones we use take 2 working days - we send the details Wed the money is paid out Fri) So if we made a payment Wednesday and cancelled it Thursday it should never arrive, but if it did the recieving bankj would be in error and have to deduct it.

Sounds like the transfer got cancelled, and only all the banks stopped the payment from reching the account except the RBS who then "corrected" the "error".

wether the employer has a right to do so is more a case of employment law, complicated by them going bust & therefore possibly being in recivership or bankruptcy. I don't know enough of either to comment on that side of it.

scooby nutter

Cheers guys,
no she didnt get a payslip

today she had a call from another girl who worked at the same place.She was paid £800 into the account for wages etc.She thought great and took all the money out of that account ,now she has got a mini statement and is £800 overdrawn!!!!They did the same to her!!
B******s!!!

russell hayward

It's possible that the Paying Bank recalled the BACS payments if there were insufficient funds in the company's account to cover these payments

scooby nutter

Thanks Russell
I bet thats what they have done!!The sneaky buggers!!

WillieF

Chances are that someone within the company has tried to do the right thing and pay the staff. However if the company went into liquidation on that day then the bank would have to try its best to protect remaining assets and recall the money.

I have been in that situation I was handed a cheque by one of my previous bosses and told to go and cash it pronto. Unfortuneatly the liquidators froze the bank accounts before I got there leaving me £2k out of pocket in expenses

Fuzz

can anyone explain why,
when you take hard cash, the folding stuff, redies, the real deal...into the bank and "pay it in" to an account it takes 3 friggin days to clear...It's cash for **** sake. [img]images/smilies/mad.gif[/img]

Andy (just a thought)

russell hayward

Why do you think they make so much money ....

ProperCharlie

It is quite likely that the former employee will end up getting some or all of her wages, redundancy etc, but it will take ages for the receivers to sort it all out. If there is no money available to pay redundancy claims, the secretary of state holds a fund which uses NI money to pay minimum claims.

MarkO

Every time I've paid cash into a bank, it's cleared overnight. That's Natwest/HSBC, anyway. My wife has an account at Natwest, and if we ever want to transfer money between my HSBC account and hers without waiting, the quickest way is always to withdraw the cash and pay it into the Natwest across the road!

ChrisB

Start reading here http://www.dti.gov.uk/er/redundancy.htm

I had to go to the DTI for wages, redundancy and notice compensation after being made redundant 21st Dec last year.

Amanda-Jane

Salaries can be recalled upto 5pm the day that they are paid in. If the salary is paid in through BACS, the employers or their bank can recall it but unfortunately it is "in the system" by then and on the other way to the employees bank.

There will be notes on your account saying that it is going to be recalled but depending on which banking system is used they may be not be able to see until after 5pm that day if the salary is being recalled.

As for any other questions I saw raised, paying cash into HSBC is available instantly but if you pay a cheque in it will show on your account overnight but won't be available until the 3rd working day. Yes, it is easier to walk across the road and pay the cash in over the counter.

Don't blame the banks as they all have to use BACS, CHAPS and clearing houses so they are all in the same position unfortunately. It is a completely separate company and totally out of the banks control.

Too much work for me today!

AJ

Fuzz

sound like you didn't get much sleep either Amanda


Andy

Amanda-Jane

What makes you think that?

AJ

dsmith

Wanted to get £5K from parents NatWest account to My NatWest account. Talked to branch and the only way we could 100% guarantee it would be in, cleared and available was Parents withdraw £5K cash. Turn to me - hand me cash, which I then paid in.

(well actually the cash never came out the safe - but the bits of paper say it did).

Deano

scooby nutter

Thanks guys and girls for the responses.
It appears that the company can withdraw your wages only on the same day as they are paid in????

Chris B,thanks for the site addy.She has already got some forms to send off,she had a quick read of the forms but it appears that because she is only 19 she cant get redundancy pay??Is this right??
All she is entitled to is a months wages from what we read

I bet next week the same company will open under a different name.
The company has many names all run by the same guys from Gurnsey, Fastfilms,Photofactory etc etc.

Thanks again

Duncan

MarkO

ROFLMAO. What a load of rubbish. The banks could introduce a same-day clearning system for cheques and electronic payments tomorrow if they wanted. The technology is all there (CHAPS/SWIFT/etc). The fact is that they like extended clearing times, as it gives 'em a a chance to make a little on the cash. [img]images/smilies/mad.gif[/img]

Diablo

Scooby Nutter

Unfortunately you have to be over 20 and have worked in there for over 2 years to qualify for redundancy.

Holiday pay due and a compensatory payment for failing to receive any statutory notice may also be payable.

Is it a formal winding up?

D

ChrisB

D's answered the questions, I'll just add expect to wait maybe a month to get money out of the DTI if you got stitched up

Diablo

A month

You'll be lucky. Can take up to 12 weeks

D

ChrisB

I was hoping the wind was going in the right direction D!

Took us about 4 months - first set of forms got 'lost' [img]images/smilies/mad.gif[/img]

scooby nutter

cheers guys,
thanks for the help and info.

Duncan