I just recently got accepted for a job at a bank and they sent over the contract and various other documentation. They state that they require all employees to open their an account with their bank in which the employee will be paid.
Is this not only legal but can I decline and decide to have my main banking account be the account of which my salary will be transferred to?
Yes they state it in their enterprise agreement as a requirement
Yes, EBAs are legal and enforceable. They're literally legal documents.
If you work for a company you shouldn't really be a member of a rival one. It's not good for business if their employees aren't even with them. Doesn't promote them in a good light if others know you don't have an account for the bank you work for. When I worked for NAB they had great employee rates and free fees (years before they did it for normal customers). I'm sure there'll be a plus in that regard.
Even if it's not economically sensible?
Lets say you work for Origin Energy and it's more cost effective to have your services with AGL?
Blind loyalty is a slippery slope
@DeepHorizon: I've been with both and no way it's economically sensible to be with AGL! But seriously the deals you get as an employee will trump just about all the other trade offs you can get as a customer. Also with banks their employee accounts are free so it's no extra if you don't want to use it as your main account. OP hasn't even stated what deals or interest he's getting with the rival bank compared to his employer.
That should work fine if your have a ING account.
I would just auto transfer it out. It does raise a bigger question about whether you will be happy working for this new employer. I suspect they will want you to use and promote their products and if you don’t like their products then perhaps you will always be conflicted. I’ve blanked outside of the big four on purpose for years and have had much better service and haven’t paid a bank fee for a transaction account for probably 10 years.
It's not a matter of "liking" their product or being happy as an employee, you might like it all you want and be happy-as-larry; rather, it is a matter of personal finance which is none of the employers business is it?
Good point. You are correct it’s none of the employers business how much money is in the employees account. The employer is crossing a line forcing the employees to use the accounts. However I believe the person can receive their pay in the account and then just transfer it out to maintain their privacy. It does come across as a bit overbearing.
What have you got to lose? The bank account you open has no onging fees attached to every day use.
Many accounts on the open market have these benefits and more such as fee free international transactions and absolutely no ATM fees no matter which ATM in the world.
That might be right, but the point is, there's no monetary loss in getting paid into a company account.
Up until Osko was introduced last year, having a company account meant that the salary payment hit the account on the same day rather than having to wait overnight for the external bank to process the payment.
Just do it, then close it once you are a few weeks in - the bank will likely have a self-service facility to update BSB/Acct in their HR/Payroll system.
^ this
Be worth checking out the range of employee discounts etc before you get worked up. Otherwise if nothing make the account and transfer the money out as soon as it hits.
You can bore your grandchildren with stories about the 2020 hardship years.
what
username checks out
It is probably in your best interest as it means you'll get your pay instantly.
The same applies to the employer/employee relationship. It is usually recommended to use the same bank.
Sounds mostly irrelevant to me. The big question is whether they have a good enough interest rate to not be moving your money straight into another account. I'd choose the highest interest option before I even considered which bank my employer used.
it sounds crap to me. Work is work.
Salary and personal finance choose to put where ever.
if it's in contract maybe talk with HR say you want to stick it in the same place
it could be to avoid any interbank charges.
Lol is having a bank account with the bank you work for really so bad? Set up an Automatic transfer. Btw, this is poorly written.
Thank you for reminding me why I never want to be an employer in Australia.
Why? Being an employer doesn’t make you their ruler. Ultimately it’s the employees that keep you in business. Imposing expectations and restrictions on their life outside of their employment hours doesn’t make you a good employer. People are at work to perform a job to earn money and it’s in their interest to act in the interests of the company for the mutual good. In this scenario I’m not sure that forcing your employees to have a bank account with the company is in the best interests of the company or the staff. If the bank account truly is better than what they can get elsewhere on the open market then the staff will join and promote the business happily to their friends. If the bank account offering isn’t better then forcing them to use it only creates unhappy employees. If the employees aren’t using it then clearly there are better bank accounts out there for non-employees as well.
How has the employer suddenly become their ruler or imposed "expectations and restrictions on their life outside of their employment hours"? FFS all they asked the OP to do was open a bank account! So before they have even started work they are jacking up over such a trivial requirement - asking "Is this not only legal" (sic). If that's their attitude before they've even started the job what will they be like at work? Running to the union rep and checking the EBA every time they're asked to do something? There's got to be some give and take and flexibility on both sides of the employment arrangement and the OP's attitude would be a red flag if I was a prospective employer.
Can you not open the account, get paid on a monday, transfer to your normal account tuesday and everything is fine?
Just do this…
Probation period and the first thing you want to do is question on of their payment policies?
Set up an automated transfer based on your pay schedule and you won't even need to think about it
Simples - you either want the job or you don't
Legally, you dont have to do it. Legally, they dont have to hire you too.
This. It's in the agreement, you are free to accept or reject it.
Bigdog875
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Come in suckers…..
anonymity don't want the bosses ta know
When I worked for Westpac they took me through setting up an account and automatically setup my pay to go into it. Once I started working there I had the ability to login to their HR system and update my payment details to another bank. I had it going to ANZ until I got my home loan with Westpac.
Most banks require this with employees.
I had to do it with my employer
When I worked for ANZ the staff account had no fees and a good interest rate. When I left on good terms 11ish years ago they shifted me onto some premium account that I still have today. It has no fees and a higher interest rate than their advertised rates.
I just got a statement from ANZ with a bit of money in there from when I was staff that I didn't even realise I had. It's been there for over 10 years and there hasn't been a cent in fees at all!
damn, thought you gonna say it made you a millionaire from interest
Good night big dog, good night boys and girls.
Most would just be grateful they were offered the job and not concern themselves with such trivialities. But I’m sure there are a few out there who would say, “Nah, put it in my bank or I’m moving on, bro.”
bE gRaTfUl YoU hAvE a JoB
You don't have to bank with them, but they don't have to employ you either.
Wow wish I only had your problem!
What bank is it? You can use my account and I can transfer you the funds once your pay arrives. Let me know :)
I'm guessing nab? I worked for them recently and allowed them to set up my account, but never once had salary go into that account. Just hop onto the payroll system and change the pay instructions to another account. I did the same when I was with CBA too.
Why not support your employer?
Really? As an employee you probably get better perks.
Transfer each month if it really bothers u.
I've worked for two big 4 banks. Both "required" you to set up an account at that bank on paper, but their HR systems happily accept bank account details for other banks.
I'm surprised at how many people are tolerant of a bank forcing their employees make certain lifestyle choices by opening an account with them, but how is that any different to the ongoing debate around the 'religious discrimination bill', with so many people complaining that it's unacceptable for a religious institution to force their employees make certain lifestyle choices?
Seems identical to me. The employer wants to know that employees share their values, whether that's the belief that one bank is better than another, or that one religion is better than another.
Hmm. Dono. Is it in your contract? If in doubt auto transfer the $$ out.