As the law stands, under the Employment Rights Act 1996, an employee is entitled to an itemised pay statement at the point of payment, or before a payment of wages or salary is made.
An itemised pay statement must include the individual’s gross pay, the amount of any fixed or variable deductions with the reason for those deductions being identified, the net pay and, if there are multiple methods of payment, it should also state which payments will be made by which method.
From 6 April 2019, all workers, including agency workers and zero hours contract workers, will be entitled to a pay statement containing the information set out above. From this date, only genuinely self-employed individuals will not have a right to an itemised pay statement.
Employers that do not comply with this obligation may face a claim in the Employment Tribunal for a declaration of the sums that should have been set out on a pay statement. However, if the employee also brings another claim at the same time and they are successful in that claim the Employment Tribunal may also award compensation of two or four weeks’ pay.
If this is something that you have not yet sorted, you have four weeks to get organised.
Please note this article should only be considered as guidance and should not be taken as specific legal advice. For further advice on this topic contact Kelly Gibson at Taylor&Emmet at Kelly.Gibson@tayloremmet.co.uk or 0114 218 4307.