Blocking an employee’s bank card or account does not relieve the employer of the obligation to pay wages on time. However, blocking can complicate transfers and create a risk of arrears.
Obligation to pay and consequences of returned payments
The mere fact that the employer has sent a payment order does not always mean the salary is considered paid: the decisive factor is whether the funds were actually credited to the employee’s account and whether the employee could use them. If the account is fully blocked and the employee cannot access the funds, there is a risk the salary will be deemed unpaid.
If the bank did not credit the funds or returned the payment, the employer must establish what happened to the initial transfer and reorganise payment of the same amount. Employers are advised to keep proof of payment and other documents confirming attempts to make the payment.
Changing account details and cash payments
An employer may transfer the salary to another account of the employee provided the employee submits a written application with the new bank details before the payment date. “Written application” means a document in written form signed by the employee stating the new details for the transfer.
The employee may also request payment in cash through the company’s cash desk. Cash payment is possible provided cash-handling rules (procedures for working with cash), accounting requirements (keeping records of transactions) and tax legislation (rules on taxation and reporting) are observed.
Employer liability and the right to compensation
If the employer transferred the salary on time to the provided details and the employee did not inform them about the card being blocked, the employer is not necessarily liable — it depends on whether the money reached the account and whether the employee could use it. At the same time, the employee’s failure to notify does not automatically relieve the employer of obligations if the funds were in fact not paid.
If the salary was credited to the account within the due period and the employee could use the funds, there are no grounds for compensation. If, however, the funds were not actually paid and the delay amounted to at least one calendar month, the employee may have the right to compensation.
Deadline: the delay must be at least one calendar month for the employee to be able to claim compensation.
