As an employer managing direct payments can be complicated. An employee has the right to know how much they will be paid, how often they will be paid and in what format they will be paid (e.g. direct into their bank account).  These details are normally contained in the contract of employment/employee handbook.

Employees are also entitled to receive an individual, detailed payslip from their employer. Payslips must contain the amount of the employee’s wages before any deductions (gross), the details of any deductions (fixed and variable), the net amount of wages and details of any part payment of wage.

Employers are prevented from making unauthorised deductions from the pay and wages of their employers and can only make deductions in specific situations and only when following the terms laid out in the employment contract/employee handbook as an express written term

For information about our Employee Handbook advice service, please visit our business service page.