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I bet there will be some that have direct debits and standing orders that will be missed due to this lateness. The council should pay compensation to them.
They have already stated they will pay any charges incurred because of the late payment! It’s in the article if you read it properly.
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How straightforward and quick it is for employees to get the council to reimburse them remains to be seen; I wouldn’t feel confident in their proficiency. Even if the council are punctual, the employees affected will still have the inconvenience of having to contact their creditors to explain why bills haven’t been paid on time, ask whether there is a penalty charge, etc.
If employees are reimbursed by the council for late payment charges and inconvenience (which I think employees should be, actually), that would be funds in excess of wages, and it would be taxpayers’ paying for whatever the council’s mistake is on this. I do think the employees and the taxpayers deserve to know what the reason is for this.