BACK PAY

WHAT IS BACKPAY?

Back pay is the difference between the paid salary and the benefits or salary promised in the employment contract. It is a way to cover up the reduced or withheld salary remaining either accidentally or intentionally.

It can also be any lagging wages that have not been given for either a specified job or the expected workload.

Usually, an employee claims backpay after being wrongfully terminated by the employer and not been compensated. Every employee is entitled to back pay if there is some lag. Usually, it is settled at the end of one’s work period is over in a company.

PROCEDURE OF BACK PAY:

If an employee has any outstanding payments after their termination, they may file for back pay. The investment companies, after considering the claim, move on to investigate.

It takes for the back pay to be cleared depending on how complicated the case is. If the employee is demanding the outstanding payment of overtime work hours, they may be quickly compensated. Still, several times like wrongful termination, it may take years to claim the back pay as there would be a legal battle between the company and the employee.

HOW TO COLLECT BACK PAY?

Back pay collection is a multi-step process. It includes the following factors:

• Recognizing the amount of back pay and the corresponding reasons for it.
• Communicating to the employer about the same and demanding the back pay.
• If the employer and the company refuse to give the amount, you may seek legal action.
• Employee unions are a great way to claim back pay. The union pressure usually works, and the employee does not need to take legal action.
• If you have taken any legal action, be sure to familiarize yourself with the employment contract and the amount you should pay.

REASONS FOR BACK PAY:

There can be a lot of reasons for back pay, either accidental or purposefully. It is the employee's duty to inform the employer about the outstanding payments and the employer to pay all the back bears in their due time.

The many reasons why there could be back pay are:

• The transition from hourly to salary employment
• Being terminated in between an unfinished job
• Wrongful termination
• Remnant payment after a salary increase
• Outstanding payments of minimum wage

Back pay is every employee's right if he or she has any pending payments or bonuses from the employee. The employee should always exhaust all options before taking legal actions and not be intimidated by their employee or the company.

If an employer tries to escape from paying the employees, they can be sued either by the employee or the unions working there.

The employees need to keep documentation and written proofs of all payments and salaries during their employment. Even after the termination, the employee has the right to claim the back pay, and they should remember to do so.

Author: Shweta Singh