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The HR Forum

Good morning!

I work for a family run business with 230 employees.  Senior management have requested that we look at the transition from weekly to monthly pay.

At the moment the majoirty of employees are hourly paid and we have a few salaried employees.  We also work a shift pattern for employees in our factories, therefore it was agreed to change the pay structure to the last Friday of a month with the cut-off being the Saturday before.

Has anyone else being involved with a project like this that would be able to offer me some guidance/templates on:

 

  • A sound business justification for this move
  • Plan with timeframe if we were to go ahead with the transition
  • FAQ's that employees may come up with

 

Any help would be greatly appreciated.

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Replies

  • Hi Louisa

    So the business reasons should really come from the owners/Directors what is driving this, it may be cost e.g. monthly pay may incur less payroll fees than weekly.  In addition for AE you have to assess the workforce every pay reference period so there may be a cost saving here too.

    So in terms of timeframes you will need to consult, as with any proposed change to a contract of employment agreement should be through obtaining the employee's consent to the change.  You may end up in a position where some of the employees do not agree in which case you will be into the realms of serving notice on the current contracts and reissuing the new one (this would be once all avenues of consultation have been exhausted).

    Note this is an area you shoud take advice on, as where an employee is proposing to dismiss 20 or more employees at  (and even though the company is not intending this) you are required to undertake collective consultation.  this is an area some practitioners fall foul of.

    So in terms of FAQs, most employees will want to understand the impact for them and what steps the company will take to minimise these.  So for example whether any loans will be available to support the transisition, the impact for them personally.  What the business case rationale is.  Technically there should also be consideration for the change, so is the employer pre[ared to offer a sweetner, sometimes this can be linked to an existing pay increase that is proposed.

    • Basically any questions will come out as part of the consultation and you should consider all of these, as in my experience employees often have some good solutions to what is being proposed.

      Good luck and I hope the above helps!

      Sarah

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