In a recent case heard by the Isle of Man Employment and Equality Tribunal, Ruane v Pride Foods Limited t/a Delissimo/Appetites handed down on 31 December 2020, new guidance was issued in respect of the provision of payslips to employees and what constitutes best practice for employers.

Section 14 of the Employment Act 2006 provides that employees are entitled to receive payslips that give a breakdown of gross and net pay, as well as any deductions, a number of recommendations were made that employers ought to take into consideration.

The judgment explains that the system for providing payslips should now be explained within the written terms of employment, which are provided pursuant to Section 8 of the Employment Act, and the Tribunal suggests that a written record of having explained the system would consequently assist in avoiding future disputes. There are a number of ways that payslips can be provided, for example in person or online. Payslips being provided online are regarded as having been given in writing, however, should an employee face issues with accessibility it is for the employer to provide the payslips in another way, which may include having a convenient location for them to be collected from.

The onus is on employers to provide payslips to employees without demand at or before the time of payment. It would be prudent to link the provision of payslips to the timing of the payment of wages, for instance the day that a bank transfer occurs, and it would be wise to set this out in the terms. In the rare instance that wages are paid in cash, the payslip should be provided within the same envelope.  Any issues that may arise as a result of system failure ought to be anticipated by the employer, who should take necessary action to ensure payslips can be provided and accessed.

In keeping with GDPR, it is necessary for employers to comply with confidentiality regardless of what system is used for providing payslips. Likewise, there ought to be a clause contained within the written terms that indicates an obligation for employees to not leave payslips where others may have access to them.

The full judgment can be found here.

DQ’s leading Dispute Resolution team routinely advise on employment matters. If you would like further information or assistance in respect of this area, please contact Leanne McKeown in the first instance.