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I am employed by a small startup of around 10 employees that is funded on a monthly basis by investors.

I work full time and taxes are calculated as PAYE.

My work contract states that I will be paid on the last working day of each month, however for the last 3 months all employees have been paid 6-10 days late.

The business owner has stated that late payments have been due to fraud checks on the large money transfers from investors into the company.

When salaries are paid late, we do not receive a payslip until the money hits our bank accounts. This means that our payslips also arrive late.

My question specifically, is can the employer withhold my payslip until my salary is paid, or is there a legal requirement for the employer to send me the payslip earlier ?

1 Answer 1

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The relevant law is Itemised pay statement, s8 Employment Rights Act 1996.

(1) [F1A worker] has the right to be given by his employer, at or before the time at which any payment of wages or salary is made to him, a written itemised pay statement.

(2) The statement shall contain particulars of—

(a) the gross amount of the wages or salary,

(b) the amounts of any variable, and (subject to section 9) any fixed, deductions from that gross amount and the purposes for which they are made,

(c) the net amount of wages or salary payable, F2...

(d) where different parts of the net amount are paid in different ways, the amount and method of payment of each part-payment; [F3and

(e) where the amount of wages or salary varies by reference to time worked, the total number of hours worked in respect of the variable amount of wages or salary either as—

(i) a single aggregate figure, or

(ii) separate figures for different types of work or different rates of pay.]

It seems s8(1) is widely interpreted to mean (A) the employer has to provide a payslip and (B) the employer can choose when to provide it so long as (C) the employer does so on or before payment.

It is considered merely 'best practice' for the employer to provide the payslip before payment so that the employee or worker has some time to check it and alert the employer to any apparent problems with it.

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