As we are now in the digital age, most things are now online, internet based or computerised. None surprising, this including our essentials such as important documentation, and monthly payslips being one of them.

However, the question has arisen with some companies/employee’s as to whether this is legal or not. Also raising issue’s such as confidentiality and technical issue’s. So, can it be done? Is it legal?

The answer is yes, it is legal. The Employment Rights Act 1996 states that “an employee has the right to be given by his/her employer, at or before the time at which any payment of wages or salary is made to him, a written itemised pay statement” meaning that electronic payslips are not prohibited by the act. However essential criteria must still be met to ensure that the law is abided by.

The employee must still receive their payslip via email or have availability to access the email either before or after the point at which their salary is paid. They must also be fully aware of how the electronic payslip system works and can always obtain hard copies of their payslips if needed.

Other factors you will have to consider is employee accessibility in certain circumstances. If for example the employee falls down ill or is off work for long periods of time, they must still be able to access their electronic payslip wherever they are.

Also to ensure employee’s have instant access, their email address and details must be up to date at all times. The correct email must be verified with the employee and this is best done in writing to prevent any mishaps.

The HMRC also has very little advice available with regards to this meaning they do not have an objection. The .Gov website has a section on payslips which includes a section called ‘Producing Paylips’ which states “You can either print payslips to give to your employees, or you can send them electronically”.

Therefore, as long as everything above has been considered and implemented and there are no objections from employee’s, there is nothing to prevent you from introducing a new, easier electronic payslip system.

Still undecided and need help? Just give us a call and we can help you make the best decision for you business.

 

Concept taken from: Indicator – FL Memo Ltd, Tip & Advice Personnel (17th Year, Issue 12)

Research from: https://www.gov.uk/running-payroll/payslips