Employeer wants DEBIT and CREDIT access to chequing accounts.

[bananasbananas]

Hi there,

I am hailing from Saskatchewan, Canada, and am having what I believe may be a privacy issue with the multibillion dollar international company I work for.

I have worked for my company for two years - there have been some shake ups lately, including the finance department. A few weeks back, they sent out a form that asked us to give them both deposit (which I am fine with) and WITHDRAWAL access to our personal chequing accounts. Now, I have never been asked for this by an employer, and, I have to say, it does not sit well with me - I feel like it is a violation of my right to privacy, however, in my research, I can't really find any information that leans either way.

They (the company) say that it is to protect them from employees charging undue expenses, so that they have a way to recover "stolen" money, is the way it was explained. Now, the company credit cards only have a $5000 limit, and any and all expenses have to have managerial approval first, so there's no way that I, as an employee, could run off with company money even if I so desired! Even if I did, I do believe that they are legally within their rights to both deduct it from my cash expenses or garnish it from my wages to recover it.

Basically, I feel that granting them withdrawal access to my chequing account both unnecessary and a violation of my privacy, so I haven't signed the form yet.

From managers to finance department to the man running our company, they have tried to bully me numerous times. First, they threatened us that the expense cards would be cancelled and we would have to do all expenses out of pocket to be reimbursed with at a later date. That was fine by me. Expenses are a required part of our job, and as I have been ever-so-frequently reminded over the course of all of this, a company credit card is a privilege, not a right. I am fine with covering my expenses up front and having them reimbursed, if the multibillion dollar company is so concerned that I will run off with a couple thousand dollars.

Now, I received an email today that I found to be quite threatening from my manager. Basically, as of today, for those who refuse to allow the company withdrawal access to their personal chequing account, all expense accounts will be cancelled. They will neither allow us to use a company credit card, nor will they reimburse us for any cash expenses we have incurred (in fact, for the last two cycles, they have been withholding mine in what seems a bid to coerce me into signing this darn form). Basically they jist of the email was sign over your chequing account access to us, or you cannot charge any expenses, and will not be reimbursed for any. The undertone (though, of course, not explicitly stated) of the email being that I will have no expense account, therefore will not be able to fulfill the duties of my job, and thus will not receive any money back for any expenses I do cover and will likely have my position terminated.

I do feel that a company wanting withdrawal access to my chequing account is a violation of my privacy, and I do not wish to have to consent. I also don't really appreciate being bullied by my employee/managers either.

I am basically trying to find out if I have a legal leg to stand on? I guess I just can't see this being ok with the way privacy laws are in Canada? I know this is allowable in the US to, say, retrieve an over allocated direct deposit, but I also know the laws are a lot different here .

[AFFA]

I wish to inform you that as per the guidelines on the payment of wages to an employee by the Ministry of Labour, any amount due to the employee may be paid by cash, cheque or by direct deposit of the amount to the account of the employee in a bank or financial institution. The amount is to be paid when due. Only an employee can have access to the account unless the employee authorises any other party to have access to it. You may, therefore, inform the employer in writing that as per the guidelines of the Ministry of Labour you may be paid any expense amount due to you in cash, by cheque or by deposit into your account but only you have access to the operation of your account. If the employer does not resolve the matter, you may file a complaint with the nearest office of the Ministry of Labour. Alternatively, you may file a lawsuit.

AFF

[Friend In Court]

Originally Posted by bananasbananas Hi there, I am hailing from Saskatchewan, Canada, and am having what I believe may be a privacy issue with the multibillion dollar international company I work for. I have worked for my company for two years - there have been some shake ups lately, including the finance department. A few weeks back, they sent out a form that asked us to give them both deposit (which I am fine with) and WITHDRAWAL access to our personal chequing accounts. Now, I have never been asked for this by an employer, and, I have to say, it does not sit well with me - I feel like it is a violation of my right to privacy, however, in my research, I can't really find any information that leans either way. They (the company) say that it is to protect them from employees charging undue expenses, so that they have a way to recover "stolen" money, is the way it was explained. Now, the company credit cards only have a $5000 limit, and any and all expenses have to have managerial approval first, so there's no way that I, as an employee, could run off with company money even if I so desired! Even if I did, I do believe that they are legally within their rights to both deduct it from my cash expenses or garnish it from my wages to recover it. Basically, I feel that granting them withdrawal access to my chequing account both unnecessary and a violation of my privacy, so I haven't signed the form yet. From managers to finance department to the man running our company, they have tried to bully me numerous times. First, they threatened us that the expense cards would be cancelled and we would have to do all expenses out of pocket to be reimbursed with at a later date. That was fine by me. Expenses are a required part of our job, and as I have been ever-so-frequently reminded over the course of all of this, a company credit card is a privilege, not a right. I am fine with covering my expenses up front and having them reimbursed, if the multibillion dollar company is so concerned that I will run off with a couple thousand dollars. Now, I received an email today that I found to be quite threatening from my manager. Basically, as of today, for those who refuse to allow the company withdrawal access to their personal chequing account, all expense accounts will be cancelled. They will neither allow us to use a company credit card, nor will they reimburse us for any cash expenses we have incurred (in fact, for the last two cycles, they have been withholding mine in what seems a bid to coerce me into signing this darn form). Basically they jist of the email was sign over your chequing account access to us, or you cannot charge any expenses, and will not be reimbursed for any. The undertone (though, of course, not explicitly stated) of the email being that I will have no expense account, therefore will not be able to fulfill the duties of my job, and thus will not receive any money back for any expenses I do cover and will likely have my position terminated. I do feel that a company wanting withdrawal access to my chequing account is a violation of my privacy, and I do not wish to have to consent. I also don't really appreciate being bullied by my employee/managers either. I am basically trying to find out if I have a legal leg to stand on? I guess I just can't see this being ok with the way privacy laws are in Canada? I know this is allowable in the US to, say, retrieve an over allocated direct deposit, but I also know the laws are a lot different here .

Allowing your company to have withdrawal rights over your personal bank account seems waym, way over the line. Taking on a multi million dollar company with its bank of lawyers can be counter productive, not just in money you probably can ill afford, but it can jeopardize your job.

What you CAN do is set up a separate account for your direct deposits to which you give your employer withdrawal rights, having no practical other option. Then when your checks are deposited, withdraw what you wish to your personal checking account. That way you have satisfied the outrageous demands of your employer and still kept your personal checking account just that -- YOUR account that no one else has access to.

PS: I know of no US employer who has made such a demand or could get away with it.

I have the same situation here in the U.S. My future employer interviewed me, and wants to hire me in two weeks. So they sent paperwork, W4's and so forth, including a direct deposit form. On the form, it stated basically that I give it permission to withdraw from my bank if they "made a mistake."

I am ok with giving back money that was genuinely a mistake. However, this "withdraw at will" option poses problems. One namely is that is they take money out of my account, it could incur an overdraft charge (around $40), and it says on the form that they are indemnified from any losses incurred to me.

So basically I would hold all liability, while they can literally take money out. I consulted a live chat from my bank, and they stated that they have 5 days to reverse the mistake. Then I asked from what point, from time of deposit, or when the mistake is first noticed?---and they responded that they couldn't advise me legally. So now I don't know what to do.

I'm going to try to not do direct deposit for now, until I get some solid answers. I'll FAX them a voided check to do direct deposit, but not sign that creepy form.