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Back pay generally pertains to the disparity between the salary received or paid to the employee and the amount the same employee should have been paid. This normally happens when the employee resigns from work or is fired from the company.
In case of the latter, where the employee contests the dismissal and wins the case in a court of law, the time that lagged during which the employee was still suppose to work and get paid accrues as the back pay as determined by the court. This is because regular wages are still earned by the dismissed employee pending the outcome of the case.
In the case of call centers, the same concept of back pay also applies. Back pays are however common in this industry because of the high turn over rate of employees. Call center agents are known to move from one company to another. Hence, resignations are very common. In which case, the accrual of wages usually occurs when the employee or an agent was unable to receive his salary due to cut off periods. For instance, normal cut off period for a salary every 15th of the month is the 25th day of the previous month and the 10th day of the “next month”. Hence if an agent resigns on day 1 of “the next month”, he is supposed to be entitled for a salary for his 5 day pay which he completely rendered. This pertains to service he rendered from day 25 to day 30.
However, payment of the said salary is not made on the same day upon his resignation. Instead, said agent will receive the salary on the 15th, which is the normal payday of the company. In which case, this is called the back pay.
Based on the foregoing discussion, it must be noted therefore that not all employees are entitled to a back pay especially if the said employee has received all the salary due to him. Moreover, most companies withhold the back pay of employees for different reasons. Some companies do this to ensure that the resigned employee is cleared from all obligations.
Some other companies withhold the back pay to buy some time for checking if the resigned employee will cause any trouble in transferring to another company such as if confidential of the previous employer is shared to the new employer. Some are just doing this to get even with the employee whom the company trained. Normally however, call center companies released the back pay entitled to a resigned agent in two or three months. If it goes beyond 6 months, the resigned employee should get help from the National Labor Relations Commission. It is important at this point that the complaining employee has kept all his employment records including copies of his pay slips.
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What is back pay? I have thought really hard before I started writing and just trying to grasp the entire meaning of it. I have been in the BPO industry for quite some time now yet personally, I have
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