Pretty sure that the pattern of past practice has created a present expectation of payment in the form of a cheque (see Brogden vs Metropolitan Railways (1876)) so they could hypathetically hold out and demand payment in that form.
There is the option to change the employee's contract of employment (be good if there was a flexibility clause in there) as a last resort by termination and reemployment under a new contract that stipulates BACS payment but does either party want that mess? (see here plus all linked pages for handy info : www.gov.uk/your-employment-contract-how-it-can-be-changed/getting-agreement)
Maybe speak with the empoyee and find out their issue over BACS payment.
Is it that they do not have a bank account in which case the firm could help them get one of the basic accounts if they have previously been in trouble.
Do they think that getting a cheque hides matters from child support? If so you may need to inform them that every penny is reported exactly the same as if payment was by BACS.
Are they one of those who has taken an arrangement to get out of debt and now no bank will touch them with a bargepole?
It may be that they do not want to talk with you about their personal finances and assuming that this is not a financial businesses (i.e. a lending institution) you would need to have a pretty nifty contract of employment to be in a position to ask them.
All in all though you need to speak with your legal team as demanding that they change could be a real nightmare where past practice has put the employee in the best position to demand continuence unless their contract is changed or they can be convinced that changing is a good idea (such as immediate transfer, no risk of the cheque being stolen, etc.) but as noted above there may be reasons why they do not want payment by automatic transfer (alimony/child maintenance/no bank account/bankrupt/ etc.).
Hope that helps get the ball rolling. Its not an answer but it puts some ideas out there for others to run with.
HTH,
Shaun.
p.s. also consider talking to ACAS. Here's a handy leaflet that covers this subject :
-- Edited by Shamus on Wednesday 30th of October 2013 12:22:50 PM
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
My client has previously paid their staff by weekly cheque but has recently enrolled for internet banking and wants to pay all staff by BACS. This has been welcomed by all employees bar one and he insists he still wants a cheque. As employers can we enforce he is paid by BACS or do we have to go along with his wishes?
Thanks Shaun, the links are very informative. The employee finishes work at 2.30 on a Friday afternoon and likes to walk to the bank and pay his cheque in personally before going home. Perhaps when he realises he can draw on his wages quicker if they are paid by BACS he may well change his mind. Until then we will run with his wishes.
In my opinion this sounds like the employee is just being plain awkward. We have staff who are exactly the same with their them and us attitude and opposing any change for the sake of it.
Are they one of those who has taken an arrangement to get out of debt and now no bank will touch them with a bargepole?
If this is the issue, can I recommend http://www.mycashplus.co.uk. They will give anyone an account and a Mastercard debit card to go with it. There are charges obviously.