Zurich Paid 30,000 Workers Double In $200 Million Bank Glitch (fortune.com) 28
An anonymous reader quotes a report from Fortune: Zurich authorities have apologized to city employees after a technical glitch caused a double payment of monthly salaries that local officials are now trying to claw back. About 175 million francs ($200 million) was sent in error on Monday, which was the payday for February, according to a statement. Workers can't keep the money, and officials are trying to devise a streamlined process so that the 30,000 employees affected can easily return it.
A technical error at state-owned Zuercher Kantonalbank, which handles the city's salary transfers, is to blame. The bank itself said that faulty software from one of Swisscom AG's contractors caused the glitch. "Swisscom is aware of the seriousness of this incident and apologizes for the inconvenience caused," the telecommunications company said in a statement shared by the bank. The unexpected windfall prompted a flurry of employees calling up the city's offices to ask about the extra money, according to Swiss newspapers. Others mockingly described it as "inflation compensation" on the city's intranet, and demanded a repeat.
A technical error at state-owned Zuercher Kantonalbank, which handles the city's salary transfers, is to blame. The bank itself said that faulty software from one of Swisscom AG's contractors caused the glitch. "Swisscom is aware of the seriousness of this incident and apologizes for the inconvenience caused," the telecommunications company said in a statement shared by the bank. The unexpected windfall prompted a flurry of employees calling up the city's offices to ask about the extra money, according to Swiss newspapers. Others mockingly described it as "inflation compensation" on the city's intranet, and demanded a repeat.
hold the March payment (Score:3, Insightful)
Mark it as an early payment for March salary, skip that payment when it's due, move on with your life.
There may be a few edge cases, but for most ones it's going to be correct.
Re:hold the March payment (Score:5, Informative)
Does not work. Salaries have to be paid according to contract. Hence they would probably get written (on paper) consent from everybody affected. And then there are cases were the two salaries are not the same.
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Indeed they do. Which is why it's trivial to correct salaries. This kind of glitch is not out of the ordinary. The only thing which made it news is the scale of it. Most companies will typically give employees the option of paying back, or taking a hit the following month. Pay the full salary the following month, and add a line item deducting the mistake from the month before. That is the *normal* and perfectly contractually compliant way of dealing with the issue.
Your contract entitles you to a specific sa
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Your contract entitles you to a specific salary, it does not entitle you to a specific net payment in your bank account. If you've ever read your payslip you'd know this.
Incorrect for Switzerland.
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Incorrect for Switzerland.
Then back up your statement. I don't trust you when you say "nah uha". Shit I don't trust most of the things you say even when they sound right.
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Sure: https://www.fedlex.admin.ch/fi... [admin.ch]
Good luck!
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It was a voluntary payment, there is no refund for that. If it happens to a single individual, it's in his or her interest to accept it as a March early payment to avoid creating problems with HR. But since this is at the level of the whole company, it's their interest to wait and see, or even fight the refund. The company lost the money due to their own mistake and they cannot force anyone to give up the March payment. There certainly will be employees willing to play stupid, and one or several worker's un
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Also the company can sue the contractor that caused the glitch, to compensate for their loss.
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You are an expert on Swiss financial laws?
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It all depends on the local laws. In the US the statute of limitations for recoupment of overpayment of an employee depends on the state. New York State for instance gives the employer up to six years to collect an overpayment, and it is as simple as deducting it from their next paycheck. In Michigan, employers are only given six months to collect, and requires every paycheck to pay at least minimum wage even after deducting the overpayment amount. So in Michigan it would take at least two paychecks to reme
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It was a voluntary payment
Irrelevant. If it was incorrect and unexpected you're not entitled to it under law. Also you don't give up a "March payment". The March payslip will still show your normal salary payment, there'll just be a deduction underneath, like the many other deductions that may be listed there routinely.
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The bank made an error in your favor is Monopoly's game. In the real world, when the bank made an error in your favor, at some point, you owe the money back.
Surge wages. (Score:3)
They should have to let them keep the money (Score:1)
If I mail you something by accident it's yours now. Unless it's a paycheck...
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If I mail you something by accident it's yours now. Unless it's a paycheck...
Except you're wrong. Most countries follow a reasonableness test. If you could reasonably assume you were entitled to the thing you received only then you get to keep it. Not only are you not entitled to keep something that has been sent to you by accident, your paycheck is actually governed by a contractual agreement along with paperwork (called a payslip) that links it to that contract.
While you're post is wrong for mailing in most western countries, it is wrong for your employer paying you in *EVERY* cou
Feliz Navidad! (Score:2)
Claw back?
Call it an early Christmas Bonus and move along. Worse things were done in the name of stimulus checks.
Bank error in your favor! Collect $200. (Score:3)
Eom
will they refund / fix the taxes or force the work (Score:2)
will they refund / fix the taxes or force the workers to repay the full pay before any withholding?
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Who cares? This is literally what the tax returns process is for. It is insanely rare for an employer to pay you exactly the right amount that results in you having a net $0 tax bill because they have no idea of your personal situation.
Average city pay - $80,000 per year! (Score:2)
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$200 million / 30,000 = $6666.67 * 12 = $80,000!!!! Dang. City workers are getting some respect in Zurich!
It seems you don't know the cost of living in Switzerland. It's not a well paying job over there.
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Bank error in your favor (Score:3)
even the swiss (Score:2)
Turns out that these days, even the Swiss are incompetent.
Swiss banking (Score:2)