Stuck Without Pay: How to Handle Salary Issues When Your Bank Changes

I am working in one of the manufacturing industries on a contract basis for the past year. Initially, they asked me to open a bank account with Axis Bank, but after 4 months, their partnership with the bank ended. Now, they are requesting that I open an account with Allahabad Bank, which I have not done yet. Consequently, my salary for November 2013 has been withheld due to my failure to open the new bank account. I have asked them to issue a cheque instead, but they are unwilling to do so. According to the rules, they are required to provide a cheque if they have issues with cash transactions.

Issue with Salary Payment

Is there a problem with issuing a cheque? Please assist me in resolving the above issue and advise me on the necessary steps to take in such situations.

Kindly respond promptly.

Regards,
Manjunath

It's a small issue, and as stated by you, the company has no relationship with the earlier bank and has formed a relationship with a new bank. Instead of sticking to your guns and being obstinate, one should cooperate as far as possible. Although salary cheques can be issued, it entails preparation and signing by the authorized signatories, which may cause delays as well as inconvenience to you in going to the bank, filing a paper slip, and waiting for it to be cashed. Also, think of the paper used in the process.

In these days of electronic fund transfer, it is faster, easier, and environment-friendly to do away with paper cheques. What more motivation does one need?

Warm regards.

The only feasible solution at this point in time would be:

Request for Salary Advance

Request the management that you are in the process of opening a bank account; however, since it will take time and your salary is already delayed, you may be given a part of the salary as a salary advance (in cash or cheque), which can be adjusted in the next month's salary.

Hope this works.

Warm regards.

Management can release salary through NEFT to your Axis Bank if they are not ready to issue a cheque. The NEFT process is very easy, and payment can be initiated to any bank account in any bank. Management should not withhold or delay the salary payment.

Thanks,

V K Gupta

Nowadays, management can facilitate transfers through NEFT/RTGS by pressuring the staff to open a bank account with a particular bank. However, management needs to realize the implications of this and upgrade their internal processes such as payroll and transfers. Opening a bank account with another bank should not be a significant issue. Therefore, consider opening a bank account for the smooth operation of the business.

Thanks & Regards,
Murali

Apart from what Mr. Raj Kumar has said, it is the duty of the HR/Accounts to get the Salary Account opened in the Bank of their choice. You have to sign the papers, the forms, and the documents to be submitted. Salary accounts nowadays are opened with zero balance, so what is the fuss in opening a bank account as per the requirement of the employer?