What is the best action for employee when employer is paying late?

[nurhakim]

Hi Cove,

I have been working for 7 years with the company. But having been given late salary. The company did not give an exact date so as to pay us. Normally it will happen around 10th each month. Now we consider its quite late. Few years back we have address this issue to HR and Top Management but it only lasts for 1 to 2 months but then keep happening the same each month after.

What is the best way to address this issue? Nobody seems to bring up this issue, only to talk behind.

We have bills to pay though!

 

[pldey42]

In my experience (UK and USA) companies never pay late because they know (a) that employees have bills to pay near the beginning of the month and (b) that they'll leave if they can't pay their bills.

I've only ever seen late payroll when the company has cash-flow problems.

So I'd leave, figuring that, if I don't, the company is likely to fail anyhow and I'll be in an even worse situation. If I felt politically strong enough and thought the company had money and there were other reasons for late payroll I'd try to organize (a) talks with managers and staff and if necessary (b) a strike - not easy, though, and risks annoying customers.

Good luck
Pat

 

[Marc]

My opinion is that ultimately a person has to always keep their eyes open for openings/job opportunities in other companies, including in other countries. It doesn't matter where you live, some companies will be a problem in one way or another and your only *real* alternative is to find a job at another company. The younger you are, the better your chances are of finding work at another company.

 

[PaulJSmith]

Seems like you have several options available to you, including:
1) Help your company try to find the root cause of the late payments and then fix it,
2) Accept that this is the norm (which it apparently is there) and make your own arrangements accordingly,
3) Find employment elsewhere that will meet your needs and expectations regarding pay and payment.

 

[nurhakim]

Thanks for your opinions,true indeed. I am in fact still searching for better opportunity out there. But sometimes things would not be too easy.
The company-yes,has cashflow problem. A strike happened few weeks ago-by
production employees-due to pending salary for almost 2 weeks.

 

[Wes Bucey]

I sympathize with your plight. I'm trying to avoid being negative here against the company and/or its managers. So, let us explore some possible reasons this company has a cash flow problem which trickles down to its employees and their pay checks.

(These are just some of the factors which every employee should be aware of, especially if the employee is trying to incorporate Deming's System of Profound Knowledge [SoPK] in his own life.)

1. Is this a start up or relatively young company or is it well-established? (Start ups often have cash flow problems, but they need to be proactive about resolving them or they are doomed. Established companies with cash flow problems are a sign of some big trouble - see below for some clues.)
2. Has there been a recent change in ownership or top management? (Changes at the top signal problems which the former managers or owners could not resolve. Unless new managers and owners communicate pending improvements to employees, it is a signal the company is headed for a break up.)
3. Is there a problem throughout the industry the company is in? (Sometimes a whole industry is experiencing tough times - then it is time to consider changing industries.)
4. Has the company lost one or more customers recently? (It is important to know WHY the customers left - their problems or they were unhappy with products or service from YOUR company.)
5. Has the cash flow shortage been reflected in breakdowns of equipment because needed repairs or replacements are put off for lack of money? (If company is shorting ONLY employees, this is a bad company and you should try to find other employment as soon as possible, but don't quit until you do.)
6. Are the top managers still driving new cars and wearing fancy clothes and jewelry? (If yes, these guys are still in "slave owner" mode and employees should flee.)
7. What seems to be the mood of the top managers you see? Are they smiling and happy when talking with each other or are they glum and curt when talking with each other and with staff?(Happy managers and sad employees is an explosive mixture. Smart employees should flee to avoid being hurt when the explosion comes. Unhappy top managers signal big problems which depress them, so it is time to leave if they do not communicate plans to improve the situation.)
8. What rumors are floating around among the employees about the company? (Employees need to LISTEN to rumors, not necessarily spread them. If an employee is NOT hearing rumors, it means he is out of the loop with coworkers as well and should determine WHY and either get in the loop or get out of the company. Cooperation and collaboration with fellow employees is impossible if they don't regard you well enough to keep you up to date with latest rumors.)

 

[Mike S.]

Any company that would do this to employees (repeatedly!!) and then does not have a clear and open line of communication with the employees about it quite frankly does not give a darn about you, and the ship is sinking. Get out as fast as you can. This company is poison. JMO.