weekly pay

[ricgem2002 11]

a friend of mine has had a letter saying the company is going back to weekly pay . talking about this to other people it seems some of them have only ever been used to monthly/4 weekly pay  wouldnt this cost the company  extra money ? whats other thought on weekly pay

 

[rudds1 102]

There will be some sort of tax loophole for the company I suspect ,never been paid monthly always every week 

[ez8004 10]

A company paying weekly doesn’t make sense. Why would you voluntarily want to screw over your own cash flow if you didn’t have to? You want to extend your payment requirements for as long as you can get away with. Pretty basic financial management here that it seems some are failing at. 

[andyofborg 11]

33 minutes ago, ez8004 said:

A company paying weekly doesn’t make sense. Why would you voluntarily want to screw over your own cash flow if you didn’t have to? You want to extend your payment requirements for as long as you can get away with. Pretty basic financial management here that it seems some are failing at. 

i'm not sure i'd see it as a sign of a healthy company.....

 

if the directors/owners are supporting the business from their own resources then it would help their cashflow to pay a quarter of the payroll once a week rather than a big lump sum once a month.

 

even if they aren't you would be paying a quarter/fifth of the monthly payroll every week rather than as a big chunk, so depending on how/when/if customers pay it might have a less damaging effect on cashflow. than a paying a big chunk out once a month.

[ez8004 10]

54 minutes ago, andyofborg said:

i'm not sure i'd see it as a sign of a healthy company.....

 

if the directors/owners are supporting the business from their own resources then it would help their cashflow to pay a quarter of the payroll once a week rather than a big lump sum once a month.

 

even if they aren't you would be paying a quarter/fifth of the monthly payroll every week rather than as a big chunk, so depending on how/when/if customers pay it might have a less damaging effect on cashflow. than a paying a big chunk out once a month.

You’ve obviously not worked for or run a business of significant size. 

 

You up want to hold onto your money for as long as you can and only spend it if you have to. That is not the same as affecting your ability to pay your costs in the first place. You seem confused. 

[Cyclone 10]

As ez says, the later you delay payments, the better it is for the cash flow of the company because you have longer to get receipts in to pay the outgoings.

Moving to weekly pay isn't going to improve cashflow, it's going to harm it.

[andyofborg 11]

15 minutes ago, ez8004 said:

You’ve obviously not worked for or run a business of significant size. 

 

You up want to hold onto your money for as long as you can and only spend it if you have to. That is not the same as affecting your ability to pay your costs in the first place. You seem confused. 

i certainly have and i'm quite well aware of the advantages of holding on to your money as long as possible.

 

however, the management of this firm seems to have decided not to do this. 

 

clearly, they must have a reason to do this and assuming they haven't gone potty then the only one which springs to my mind is that they are having a, hopefully temporary, funding crisis and are finding it easier to scrape up the money to pay the staff on a weekly basis. 

 

at least i offered a suggestion, possibly a wrong one, but it's more than you have

 

 

[Cyclone 10]

What would stop them scraping up that money and then keeping it in the bank for 3 more weeks, then 2 more weeks then 1 more week, as they scrape up the pay for each week?

[Happ 25]

What industry or sector is this employment within? Or better still, what is the company name? It may give people abetter understanding of the circumstance then.

[ricgem2002 11]

having spoke to my friend again it seems the company are getting rid of 4 weekly payments and instead  they will be paying a monthly payment instead,  but he and his workmates have been put on weekly payments. they have not been given the chance to go monthly and have to sign a form to say they accept weekly payments its a big named company within the construction industry 

[Michael_W 11]

There are lots of people who are paid weekly, yes even in big companies, they are usually non salaried, paid by the hour, get basic statutory sick pay and only have to give one weeks notice to leave, it may be that the company has given them such a contract, have they said their contracts have changed or anything ?

[ricgem2002 11]

2 minutes ago, Michael_W said:

There are lots of people who are paid weekly, yes even in big companies, they are usually non salaried, paid by the hour, get basic statutory sick pay and only have to give one weeks notice to leave, it may be that the company has given them such a contract, have they said their contracts have changed or anything ?

will ask him again when i see him and update