The right of a company employee to choose a bank for salary payments

There are many cases where the management of an enterprise or institution independently decides the question of where, when and how its employees will be paid.

Most often, the management of the enterprise selects a bank to which employee salaries will be credited, regardless of whether it is convenient for company employees and whether they accept the bank tariffs, ATM locations or other conditions.

But the legal norms in Ukraine are based on the principles according to which no one can be compelled to do what is not provided by the law (Article 19 of the Constitution of Ukraine); in particular the Law of Ukraine On Remuneration clearly defines legal conditions for payment of salary and prevention of the violation of rights and legitimate interests of employees.

According to Article 24 of the Law of Ukraine On Remuneration, the personal written consent of the employee is required to make salary payments through the institutions of banks, or postal transfers to the account (address) specified by the employee with the costs of these obligatory payments borne by the employer.

According to Article 25 of the Law of Ukraine On Remuneration, it is forbidden in any way to restrict an employee to freely dispose of his/her salary, except in cases provided for by law. Payroll deductions for the purpose of which the employee pays the employer or any intermediary directly or indirectly to obtain or retain work are prohibited.

Thus, everyone has their own legally protected right to freely choose a bank, including for receiving their salary.