Thursday

How to handle a request for cheque payment for future salary in view of his bankruptcy?

How to handle a request for cheque payment for future salary in view of his bankruptcy?

What are the legal obligations? How do you handle such requests.

By my understanding, company will receive a garnishee order from court or the lawyer to officially notify that there are legal claims against the wages.

If so, company has to follow the instructions without fail, especially the court letter. Until company is notified, the wage is still legally belong to the employee and so the employee has the right in how he wants to do with his money. As such, there is no legal implication on company if company wants to pay through not crossed cheque under his name or through cash or through a bank account of another name (as long as there is a signed letter to this effect).

HR does not need to verify whether the bank account is frozen or not. Instead, HR should remind the employee on his obligation to inform company if such obligation is lay down in the employee handbook or the employment contract.