As an employer you are legally obliged to give each employee a written itemised pay statement, this is usually known as a payslip or wage slip. This must issue at, or before, the time you pay your employee.
The right to receive an itemised payment does not apply to people you pay who are not employees, i.e. contractors
What should be in a statement of pay?
- The gross amount of the wages or salary before any deductions
- Fixed deductions: amount and the reason: eg. union subscriptions.
- Variable deductions the amounts of and reasons for
- The net amount of wages or salary payable after deductions
- A breakdown of each part-payment eg. such as part by cheque, part in cash
Pay statements and tribunal claims
- An employee may have a tribunal claim where you have:
- Failed to give them any type of pay statement.
- Not included all the required details in a pay statement.
- Dismissed them for seeking to enforce a right to a pay statement.