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Employer Late For Payday In Ontario Due To Direct Deposit

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Employer Late For Payday In Ontario Due To Direct Deposit

Postby mate » Sat Dec 03, 2016 3:29 pm

Hello, I have been with my current employer for half a year, and I get paid semi-monthly(on the 7th & 22nd of each month).  When payday would fall on a weekend/stat holiday we would receive our cheque the business day prior.

Since our last payday the company had us set up direct deposit(and we were told it was mandatory, which i didn't mind as long as we would still get paid on or before the appropriate day).

As 'luck' would have it the very 1st direct deposit payday fell on a Sunday.  My direct superior assured me and my co-workers that we would still get paid Sunday morning, if not earlier,(but it seems he was just making an educated guess) and we did receive our pay statements this friday, the day we normally would have received a post dated cheque.  

Its now Sunday, mid-day and no deposit has been made.  I spoke to my bank, and they were under the impression that it would indeed get differed to the NEXT business day.

So my question(s) are:

1) is this contrary to Ontario law to pay me after our preset payday, or is it out of their hands because they set the wheels in motion, and its not their fault that the bank just doesn't do direct deposit on weekends?

2)If it is unlawful, are there any repercussions/compensations/obligations on the part of my employer?

3) if this is just an accidental loophole, and there is no way to avoid it, i would want to go back to old-fashioned paycheques.  Is it lawful for my employer to force me to use direct deposit? I appreciate any help you can offer in clearing up this matter.

Regards,

Chiam
mate
 
Posts: 52
Joined: Thu Mar 31, 2011 11:34 am

Employer Late For Payday In Ontario Due To Direct Deposit

Postby Amhuinn » Wed Dec 07, 2016 9:10 am

http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_00e41_e.htm

Above is a link to Ontario Standards "Employment Standards Act" which is the law governing employment in Ontario, Canada.http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_00e41_e.htm#BK1...

This is the link to part V of the act which covers payment of wages.

It is legal to mandate direct deposit if the conditions contained within the act are met. Direct deposit

(4)  An employer may pay an employee’s wages by direct deposit into an account of a financial institution if,

(a) the account is in the employee’s name;

(b) no person other than the employee or a person authorized by the employee has access to the account; and

(c) unless the employee agrees otherwise, an office or facility of the financial institution is located within a reasonable distance from the location where the employee usually works. 2000, c. 41, s. 11(4).

About when payment must be made it says:

Payment of wages

11.  (1)  An employer shall establish a recurring pay period and a recurring pay day and shall pay all wages earned during each pay period, other than accruing vacation pay, no later than the pay day for that period. 2000, c. 41, s. 11(1).

Technically you should be paid on the pay period. Since the pay period falls on Sunday and banks do not work on Sunday it will always be on Monday for any pay date that falls on Sunday. You could challenge this, however, you will have been paid by the time you challenge it with employment standards. What you will cause is a problem with you and your employer over being paid on Monday instead of on Sunday. You will have to decide if it is worth it because after all you have to work for this company. Do you want to push it to this limit and cause bad relations between you and the company? That is a decision you must make. Since it only happens maybe once or twice a year a good employee would simply plan for those times on the check being a day late and work with the system.

Shirley  
Amhuinn
 
Posts: 55
Joined: Fri Jan 03, 2014 9:23 am

Employer Late For Payday In Ontario Due To Direct Deposit

Postby Fontana » Sun Dec 11, 2016 5:43 am

Hello, I have been with my current employer for half a year, and I get paid semi-monthly(on the 7th & 22nd of each month).  When payday would fall on a weekend/stat holiday we would receive our cheque the business day prior.

Since our last payday the company had us set up direct deposit(and we were told it was mandatory, which i didn't mind as long as we would still get paid on or before the appropriate day).

As 'luck' would have it the very 1st direct deposit payday fell on a Sunday.  My direct superior assured me and my co-workers that we would still get paid Sunday morning, if not earlier,(but it seems he was just making an educated guess) and we did receive our pay statements this friday, the day we normally would have received a post dated cheque.  

Its now Sunday, mid-day and no deposit has been made.  I spoke to my bank, and they were under the impression that it would indeed get differed to the NEXT business day.

So my question(s) are:

1) is this contrary to Ontario law to pay me after our preset payday, or is it out of their hands because they set the wheels in motion, and its not their fault that the bank just doesn't do direct deposit on weekends?

2)If it is unlawful, are there any repercussions/compensations/obligations on the part of my employer?

3) if this is just an accidental loophole, and there is no way to avoid it, i would want to go back to old-fashioned paycheques.  Is it lawful for my employer to force me to use direct deposit? I appreciate any help you can offer in clearing up this matter.

Regards,

Chiam
Fontana
 
Posts: 42
Joined: Sun Jan 12, 2014 7:27 am


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