In this day and age, there is no excuse for an employer not to provide their employees with payslips. Yet, this is not always the case. So what does the law state on this?
The Payment of Wages Act 1991 gives everyone the right to a payslip. In April of this year, the law was updated to include a more defined statement especially for those who worked variable hours at variable rates of pay.
Section 4 of the Act sets out that if an employer ‘contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £1,000’.
Employers have a duty to provide their employees with pay statements on or before payday, showing all that they are due and what has been deducted. Employers have the flexibility to decide whether they provide employees with paper or online payslips with online payslips definitely being the most cost-effective solution!
It has been discovered in a recent survey that more than 25% of an employers workforce are unlikely to understand the information on their payslip. Do you use a system which can provide the correct clarity and detail to avoid confusion? On payday the HR & payroll team can find their phones are red hot with questions from employees. Taking time to monitor the trends in questions being raised by your employees will allow you to review and potentially make changes which will reduce the time taken to support your employees.
AAB can provide you with advice and support in relation to your payroll. We can also work with you to provide process reviews to ensure your in-house process is as compliant and streamlined as it can be. For more information please contact Steven Price or your usual AAB contact.
By Steven Price, Payroll Analyst at Anderson Anderson & Brown LLP
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