Royal Bank of Scotland staff facing disciplinary action over accounts

Staff at Royal Bank of Scotland have been told they face disciplinary action if they do not open an account with their employer.

In letters being sent to an estimated 14,000 staff, RBS said failure to open a company account was a breach of the terms and conditions of their employment and could result in disciplinary action.

The move by the UK’s second-largest banking group has angered the Amicus union, which said it was currently seeking legal advice on the matter.

RBS, which also owns NatWest and insurers Direct Line and Churchill, said it had always required staff to open current accounts with the company to receive their salaries.

It said that the requirement was standard industry procedure and was clearly explained to staff during interviews. RBS added that the letter came after a regular review to remind staff of the terms and conditions of their contracts.

However, Amicus said: “Our helpline has been jammed with calls from angry staff. If you work for Tesco you won’t be disciplined for buying your groceries from Sainsbury.”

It claimed that most of the staff affected had been transferred into the company following the takeovers of Direct Line and Churchill and were not on contracts that required them to open RBS accounts.

Amicus said: “RBS’s disproportionate and heavy-handed approach is counter-productive and bad for morale. We are calling on the bank to reconsider its position.”

RBS said that opening a current account within the firm formed part of its overall reward package, which included benefits such as discounted mortgages and savings.

It explained that staff who did not comply the terms of employment would face disciplinary procedures, but added that this did not mean they would lose their jobs.

“Our staff are completely at liberty to run other accounts with other providers if they wish, once the money is theirs they can do what they like with it,” a spokesman for the bank said.

Lloyds TSB confirmed that it paid employees’ salaries into a Lloyds TSB current account.

It said it encouraged all members of staff to get to know their products and be visible advocates of the brand when they open their wallets, however, it added that it did not force staff to open an account with the company.

Amicus's Alison Maclean told BBC Radio 4's Today programme: "Whilst it is desirable for employees to hold a bank account with the organisation for which they work, if they work in the financial services sector, it is not something the union would view as essential.

“We believe that the employer’s approach in this has been heavy-handed and certainly not conducive to good employee relations.”