Payslips and Deductions

Image result for payslips and deductionsPayslips

You must give your employees and ‘workers’ a payslip on or before their payday.

What to include

Payslips must show:

  • pay before any deductions (‘gross’ wages)
  • deductions like tax and National Insurance
  • pay after deductions (‘net’ wages)
  • the number of hours worked, if the pay varies depending on time worked

Payslips can also include information like your employee’s National Insurance number and tax code, their rate of pay, and the total amount of pay and deductions so far in the tax year.

Employers must also explain any deductions fixed in amount, for example repayment of a season ticket loan. This can be shown either on a payslip, or in a separate written statement.

Deductions from your employee’s pay

An employer is not allowed to make deductions unless:

  • it’s required or allowed by law, for example National Insurance, income tax or student loan repayments
  • the employee has agreed in writing
  • their contract says you can
  • there’s a statutory payment due to a public authority
  • they have not worked due to taking part in a strike or industrial action
  • there’s been an earlier overpayment of wages or expenses
  • it’s a result of a court order

A deduction cannot normally reduce their pay below the National Minimum Wage even if they agree to it, except if the deduction is for:

  • tax or National Insurance
  • something they’ve done and their contract says they’re liable for it, for example a shortfall in the till if they work in your shop
  • repayment of a loan or advance of wages
  • repayment of an accidental overpayment of wages
  • buying shares or share options in the business
  • accommodation provided by you as their employer
  • their own use, for example union subscriptions or pension contributions

Time Off for Family and Dependants

Related imageYour rights – As an employee you’re allowed time off to deal with an emergency involving a dependant.  A dependant could be a spouse, partner, child, grandchild, parent, or someone who depends on you for care.

How much you get – You’re allowed a reasonable amount of time off to deal with the emergency, but there’s no set amount of time as it depends on the situation.  ExampleIf your child falls ill you could take time off to go to the doctor and make care arrangements.  Your employer may then ask you to take annual leave or parental leave if you want to look after your child for longer.  Tell your employer as soon as possible how much time you’ll need so it can be agreed.

Limits on time off – There are no limits on how many times you can take time off for dependants.  Your employer may want to talk to you if they think time off is affecting your work.

Pay – Your employer may pay you for time off to look after dependants but they don’t have to.  Check your contract, company handbook or intranet site to see if there are rules about this.

Exceptions – You can’t have time off if you knew about a situation beforehand.  For example you wouldn’t be covered if you wanted to take your child to hospital for an appointment. You might get parental leave instead.  Check your employment status to see if you’re classed as an ‘employee’.

Compassionate leave – If you aren’t given time off for dependants, your employer may allow you ‘compassionate leave’ – this can be paid or unpaid leave for emergency situations.  Check your employment contract, company handbook or intranet for details about compassionate leave.

You can find more details here