Ensuring Payroll Compliance
The best way to ensure country-wide compliance no matter what is to choose a payroll provider that specializes in delivering an effective and accurate service. As a provider of award-winning international payroll, FMP Global is used to navigating the complexities of multiple compliance.
When should I receive my payslip?
In accordance with payslip law, your employer must issue your payslip on or before your payday. Paydays vary by business and by pay run. Some paydays are the same day every month, while others are weekly.
If you’re paid every four weeks, your payday will vary every month. You employer’s payroll team should manage this in a way that ensures that your payslips are made available to you on or before each payday.
Should my payslip be paper or electronic?
Under current payslip law, payslips can be provided in traditional hard copy or an electronic copy. In order to streamline their payroll functions and save on paper and ink, more and more people are opting for online payslips.
They also provide extra benefit to employees, because the payslips are safely stored and available at a moment’s notice. Many payroll software packages include an online payslip option as standard that meets all current payroll legislation and is able to be adapted easily to accommodate for future changes.
What deductions can my employer make on my payslip?
Payslip law also refers to situations where deductions are made from pay or you are required to make a payment to the employer. Employers are allowed to make deductions in cases when the deduction is:
- required by law. Such as PAYE tax and National Insurance;
- provided for in the contract of employment;
- part of recovery for an overpayment of wages or expenses;
- arises due to strike action;
- required by a court order;
- made with your written consent.
If you do something that results in your employer suffering a loss, they may be allowed to deduct the loss from your wages. This can include breakages, till discrepancies, or in situations where your employer is providing you with a service. This is most commonly in circumstances where your employer provides you a uniform. In these cases, a deduction or payment by the employee is only allowed within circumstances.
Under payslip law, such deductions can only be made if they are already allowed for in your contract if they are part of a service provided. For unforeseen circumstances, such as damage or breakages, payslip law states that you must have received a full week’s written notice first. Such deductions must be fair and reasonable and not exceed that cost of the loss. Deductions as a result of loss caused must take place within 6 months of said loss occurring.
Failure to pay all or part of the wages due to an employee is considered an unlawful deduction in pay and has reasonable grounds for dispute. Likewise, unpaid notice, holiday pay, bonus and commission payments can also form part of a claim under current legislation.
Can I insist on a paper payslip?
Payslip law states payslips must be provided in either hard copy or electronic copy form – employers are not obligated to produce a paper payslip if electronic ones are given. However, if you are finding accessing an electronic payslip difficult, make your employer aware, as they may be able to print them for you.
My employer refuses to give payslips – what can I do?
If you have received no payslips from your employer, your first step should be to talk to them, asking why you are not receiving your payslips. If after challenging them nothing has changed, you should speak to your local Citizens Advice Bureau for advice on the matter. You may need to raise a grievance or, worst case scenario, take your employer to a tribunal.
What should be on my payslip?
Most importantly, your payslip must show two things:
- your earnings before and after any deductions
- the amount of any deductions that may change each time you’re paid
Changeable deductions are typically tax and National Insurance, but they will vary based on your personal circumstances. Employers must also explain any deductions fixed in amount. You may have pension contributions, a child care subsidy or similar benefit provided by your employer. They can choose to do this either on a payslip, or in a separate written statement.
To find out more, read our guide to understanding your payslip.