4. Payment of Wages
THE EMPLOYMENT (JERSEY) LAW 2003 - Guidance note 4
This statement is intended to explain to employers and employees the principal requirements of the Law. It is not intended to cover all the requirements of the Law, nor does it represent a statement of the Law.
Payment of Wages (part 5 Articles 45 to 55)
- Where wages are paid in money they shall be paid in legal tender and not in any other form alleged to be legal tender e.g. promissory notes, vouchers or coupons.
The Law also provides for direct payment into a bank account or joint account in the name of the person to whom the wages are due, or payment by cheque, postal order or money order. At the express written and signed request of the employee, wages may be paid into an account held by a third party who is neither directly nor indirectly associated with the employer.
Partial payment of wages in kind
1. Partial payment of wages in the form of allowances in kind is permitted where this is customary or desirable because of the nature of the industry or occupation concerned.
These allowances must be appropriate for the personal use of the employee and the employee's family and the value given to them must be fair and reasonable.
Wages to be paid directly to employees
2. Except where there is any legal requirement, collective agreement or where the employee has given specific permission an employer shall pay wages direct to the employee.
3.An employer cannot in any way dictate the manner in which an employee can dispose of his wages.
Deductions from wages
4. Deductions from or distraints (i.e. resulting from a legal obligation imposed by a Court) on wages may only be made with:
(a) the permission of the employee by virtue of a relevant agreement;
(b) a judgement or order of the Royal Court or Petty Debts Court;
(c) the authority of any Law, Regulation or other Enactment containing such a requirement (e.g. deduction of Social Security Contributions).
Wages to be paid at regular intervals
5. An employer must pay employees on normal working days at regular intervals of not more than one month except when a law, other enactment or relevant agreement provides for other arrangements.
Itemised pay statement
6. On or before each pay date, an employee must be given by their employer, at or before the time at which any payment of wages is made to the employee, a written itemised pay statement. The following details must be included: gross amount of wages; amount of and purpose of any variable deductions; net amount of wages; a description of the amount and method of payment when different parts of the net wages are paid in different ways.
7. Reference may be made to the Tribunal by the employer or the employee where there is some dispute about the provision of, or particulars within, a pay statement, provided that this is done while the employee is still employed or within 8 weeks of termination of employment (but not on a question solely about the accuracy of an amount).
8. If the Tribunal finds that un-notified deductions have been made (i.e. deductions without any details being given to the employee in any pay statement) in the 13 week period prior to the reference being made, it can require the employer to repay the un-notified deductions to the employee.
9. From 1 April 2017 employees can lodge a claim at the Tribunal if an employer fails to provide payslips and may receive compensation of up to 4 weeks pay.
Further advice or information and copies of this and other guidance notes may be obtained from the Jersey Advisory and Conciliation Service in person or by telephoning (01534) 730503; email firstname.lastname@example.org; www.jacs.org.je
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JACS April 2017
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