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If you own a business and you pay your employee and then they lose the check are you required by law to write another one?

2007-08-18 10:28:53 · 9 answers · asked by lucyQ 1 in Business & Finance Small Business

im sorry i should have added that i had three employees who were related and two pay periods they stated their checks (which were mailed) never came so i stopped payment cost around 100.00 and reissued then had them hand delivered by courier. then they lost one of the checks...so im out about 150.00 with couier stop pay and just harrassment now the last check that was lost is for 162.00.....do i have to write yet another check

2007-08-18 10:48:00 · update #1

9 answers

If the debt remains unpaid, for whatever reason, you are still obligated to pay it. You might consider re-issueing a check (and incurring the expense and inconvenience of stopping payment on the first one) as a one-time only service to that employee AFTER they sign a document indicating that they understand that the next time this is necessary, they will be charged for the service.
Having just read your addendum, I see it's a pattern, not a one-time occurance. Inform them (in writing) what your costs are for each re-issued check and include the fact that you will begin deducting those costs from the net amount of that check to cover your costs. Also include in that written document the number of times this has occured. If it comes to legal proceedings, documentation is your friend. If they need babysitting like that, that's ok; it just can't be free of charge, not in the real world.

2007-08-18 10:41:38 · answer #1 · answered by Anonymous · 1 1

Hello friend,
The best and moral thing on the part of the employer is
to report that cheque as lost to the bank and do the
necessary formalities as the bank may ask for, so as
to treat that cheque as cancelled, if possible, and pay
to the employee by issuing another cheque, while taking
in writing from the employee that the cheque issued earlier, has been lost. Cheque, having been lost, is a human error and it can happen with anybody, though not often. This should
not and cannot be taken as an excuse, not to pay the
employee for the services rendered. By law, the
employer still owes to the employee and remember that
losing a cheque is not an offense by any means.
More importantly, think on moral grounds also, what an
employer should do under these circumstances! Just pay.
Best wishes friend.

2007-08-18 11:05:05 · answer #2 · answered by total c 3 · 0 1

You have to pay him or her, however you need to now initiate a last check clause in your hire packet that covers the actual and administrative cost of replacement of lost checks, that will take care of future occurrences of this type...

Here is an example of a few key points:

1. When an employee losses his check or it has been stolen, he or she must submit written notification of such loss, to include copy of police report.

2. If a check is mailed to an employee and not received, the check will not be considered loss or stolen for a period not to exceed 30 days from the date issued.

3. If a employees payroll check is hand delivered and is lost, the employee will be assessed a administrative fee of $75.00 and bank stop payment fee of $50.00 per occurrence. Further the issuance of the lost check will be credited (minus fees) to the next pay period following the pay period that such loss was reported.


Well that was a couple of hints, this will get everyone on the same sheet of music.....

2007-08-18 11:14:09 · answer #3 · answered by James F 2 · 2 0

No, your not required to issue another one. However, if that employee is an assest to your bussiness then I would take the time to cancel the check and reissue because chances are, they will leave your company. If they wont be a huge loss, then say no and it will be your gain of money.

Also, they very well take it to the courts which can be a lenthy process and agervation. It really depends how far your willing go to over a misplaced check.

2007-08-18 10:36:47 · answer #4 · answered by Leona PH 4 · 1 1

Guess what? If money never changes hands - you still owe them.

You can't get out of paying your employees what you owe them just because they lose the check.

Especially if they ask you to replace the lost one.

Can you say "violation of labor laws"?

2007-08-18 10:37:39 · answer #5 · answered by Anonymous · 0 1

If the check was to pay a debt, you have no proof it was paid if the check was lost. You can still be called on to pay the debt.

(Besides it's the moral thing to do)

2007-08-18 10:37:34 · answer #6 · answered by jimdotedu 5 · 0 1

actually, you are required to pay them for their work. if the check is lost you arguably haven't paid, so you need to write another one.

of course, if the first one then 'turns up' and is cashed, either it was forged and your employee will happily sign the forgery complaint down at the police station, or you fire the employee for thieving from you.


GL

2007-08-18 10:36:38 · answer #7 · answered by Spock (rhp) 7 · 1 1

No, you are not required by law to make up for their incompetence.

If they lost their check, then that is simply an example of irresponsibility on their part.

2007-08-18 10:33:44 · answer #8 · answered by Anonymous · 1 1

Yes, they aren't paid until the money is in their pocket. If you don't that pretty much makes them slave labor for the week in question. You aren't allowed to employ people and not pay them.

2007-08-18 10:48:08 · answer #9 · answered by Angie 6 · 0 1

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