Itemised pay statements FAQs
Why have an itemised pay statement?
Legislation requires an employer to provide an employee with an itemised pay statement. A guide to the law as it relates to pay statements can be found if you click here. A failure to provide pay slips on or before a pay date is a breach of the legislation and could result in a claim for up to 4 weeks pay. It is the Employer's statutory obligation to provide pay slips for each pay period, not just if/when an employee asks for one.
What should the statement contain?
The itemised pay statement should contain the following particulars:
- gross amount of wages/salary
- details of variable deductions and of fixed deductions where particulars have not been previously notified to employees
- details of variable payments such as overtime, commission or bonus payments and fixed payments such as shift pay
- net amount of wages/salary payable
- breakdown of net payments if paid by different methods, e.g. part cash, part cheque.
- The Minimum Wage Order 2007 introduced new obligations for employers under Article 4 (see (2) below:
Records to be kept by employers
(1) If an employee qualifies for the minimum wage, his or her employer must keep in respect of the employee records that are sufficient to establish, in accordance with Regulation 6 of the Employment (Minimum Wage) (Jersey) Regulations 2004, that the employer is remunerating the employee at a rate that is at least equal to the minimum wage.
(2) The records must show the actual number of hours worked by the employee during each pay reference period (and not just the contractual hours worked).
(3) The records must be in a form that enables the information that is to be kept about the employee in respect of a pay reference period to be produced in a single document.
(4) The records that must be kept under this Article must be kept by the employer for a period of 10 years beginning with the day on which the pay reference period specified in paragraph (5) ends.
(5) The pay reference period to which this paragraph refers is the one immediately following the pay reference period to which the records relate.
(6) The records may be kept by means of a computer.
NB: Failure to present an itemised payslip to employees on or before the pay date may result in a claim being lodged at the Tribunal and an award of up to 4 weeks pay as compensation can be awarded to the employee.