Slipping up?
Question
My company only puts the total cash amount and deductibles on my wage slip. I am paid monthly on an hourly rate, which changes each month according to how many hours I work. It doesn't state how many hours I've worked or the holiday entitlement taken or owed. Is this right?
Answer
An employer must give every employee an itemised pay statement including the following:
- The gross amount of the wages or salary;
- The amounts of any fixed deductions and the purposes for which they are made, for example, trade union subscriptions and National Savings scheme contributions;
- The total figure for fixed deductions, when a separate statement of the details has been provided;
- The amounts of any variable deductions and the purposes for which they are made (tax, National Insurance, pensions etc);
- The net amount of any wages or salary payable;
- The amount and method of each part payment when different parts of the net amount are paid in different ways, for example, the separate figures of a cash payment and a balance credited to a bank account.
An employer may choose to give one of the following:
- A pay statement which specifies the amounts and purposes of every fixed deduction separately;
- A pay statement which specifies only the total amount of all fixed deductions without any explanation of their purpose. In this case the employer must give the employee a standing statement of fixed deductions (which identifies all the regular deductions from their wages) at or before the time the pay statement is issued.
If a standing statement of fixed deductions is used it must be in writing and must:
- For each item deducted, state the amount, the intervals at which the deduction is made, the purpose or description of the deduction, for example, National Savings scheme or trade union subscription;
- Be given to the employee at, or before, the time of issuing any pay statement which quotes the total figure of fixed deductions;
- Be reissued at intervals no longer than 12 months apart, incorporating any amendments.
If there is any change at all which affects an employee's fixed deductions, the employer must give the employee one of the following:
- A written notification of the details of the change;
- An amended standing statement of fixed deductions, which is then valid for up to 12 months before reissue.
As you can see, your company does not have to give a breakdown of how the hourly rate is worked out, but would need to show overtime separately. Again, accrued holiday need not be shown on the slip. This should be shown in either your contract or the company handbook, which is - in effect - the standing statement.
If you are still confused and feel it would help to discuss this with an advisor, call the Acas helpline on 08457 474747 for more help and information.
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Question answered by CAB
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