Pay policy documents and templates

All the following pay documents are included in our Human Resources Folder. Click on the links to discover more about each template. 

 
Pay records and forms
              
Pay letters

 
 

pay template Pay  


All employees have the right to know how much they will be paid and how often. They are entitled to receive an individual, detailed written pay statement from their employer, either when they are paid or shortly before.
 
When your employee starts work you must tell them: 
 
The day or date when they will be paid – e.g. last day of the month
How you pay them – e.g. cash, or directly to their bank
 

Tax

As an employer, you'll have to deduct Tax and National Insurance from your employees' pay each pay period and pay this to HMRC. P.A.Y.E. (Pay As You Earn) is the system that HMRC uses to collect Income Tax and National Insurance contributions from employees. 
 

Minimum pay

Most UK workers are entitled to be paid at least the National Minimum Wage (NMW). The NMW rate is reviewed every October by the low pay commission. HMRC can take employers to court for not paying the NMW.


Pay deductions

Employees are protected from employers making unauthorised deductions from their pay. As the employer you can only make a deduction in specific situations these must follow your contract of employment terms. Even if the employee has given you permission for a deduction you must not reduce the employees pay below the National Minimum Wage rate (except a limited amount for accommodation).
 
You are not allowed to make a deduction from an employee’s pay unless: 
 
  • You are required to do so by law- for example Tax and NI
  • Your employee agrees in writing to the deduction
  • The employees contract of employment states you can
  • It is a result of a statutory disciplinary proceeding
  • A statutory payment is due to a public authority
  • The employee has not worked due to industrial action
  • To recover an overpayment of wages or expenses made earlier
  • It is a result of a court order or Employment Tribunal decision

 
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