Contents

Your rights to an itemised pay statement

Your Equal Pay rights

Your rights to Sick Pay, including Statutory Sick Pay (SSP)

Your right not to have unfair deductions from your wages (Wages Act)

The right to pay if you are laid off or put on short time working

Your rights under the Minimum Wage laws

For Information on Maternity Pay, go to Your Family Rights section

For information on Holiday Pay go to Your other rights section

For information on Redundancy Pay go to Your Dismissal Rights section

Introduction

This section aims to cover all the issues that arise in connection with your pay.

Itemised Pay Statement

Every employee, regardless of their length of service, has the right to an itemised pay statement. This statement has to be given to you at, or before, the time at which you are normally paid.

Your pay statement must be in writing and is required by law to contain the following information:-

• Gross earnings.
• Net pay.
• Fixed and variable deductions from your gross pay.
• Where different parts of the net amount are paid in different ways, details must be provided of each amount and a way in which each part is paid.
• How holiday pay is calculated if this is included as part of your wages

If your employer fails to comply with these obligations, you can refer the matter to an employment tribunal.

It is possible for employers to issue a standing statement covering the fixed deductions from pay. Where this is the case, employers must re-issue this statement at least every 12 months.

There are strict rules governing the deductions that can be made from your pay by your employer. For further information on this see the section "Deductions from Wages" below.

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Equal Pay Act 1970

Employers should pay men and women on the same basic terms, providing the work they do is broadly similar, or rated as equivalent (under a job evaluation scheme, for example). You do not have to be doing the same job as the person you are comparing with.

Equal Pay laws are an extension of Sex Discrimination in a way. You can only use the Equal Pay Act when your pay is below that of someone of the opposite sex. You cannot use this law if you are unhappy with your pay when compared to someone of the same sex. This would have to be taken up with your Employer as a grievance.

Groups of people can use the Equal Pay laws, where one group is mainly men and the other group is mainly women. So, for example, hospital porters (usually male) could be used by nurses (mainly female) as a comparison on pay rates.

From April 2003 you can request that your Employer completes an Equal Pay Questionnaire. This new right will help you to obtain information on pay rates from your Employer - information that some Employers will be reluctant to disclose to an individual. For help with this contact our Advice Line.

If there are pay differences, these may not be due to sex - there may be a bonus for length of service, or performance-related pay which explain differentials. In other words your Employer may be able to defend the pay difference by stating that it has nothing to do with the sex of the workers involved. Start by talking to your Employer or your Representative. If you need further help contact the Equal Opportunities Commission or our Advice Line  

The Equal Pay Act basically requires employers to pay men and women on the same terms where a woman can claim equal pay as a man (or vice versa) in the following situations:

1. The woman is employed on similar work with a man in the same employment; or
2. Where the woman is employed on work that is rated as equivalent with that of a man in the same employment; or
3. Where the work is classed as being of equal value.

The Act defines "similar work" as situations where the woman's work is of the same or of broadly similar nature to that of a man. The man must be employed by the same company or at the same establishment by an associated employer. The comparable man could also be employed at another establishment where common terms and conditions apply within the same employer. This is more likely to succeed where the terms of employment of both employees are agreed by the same body - a Joint Negotiating Committee (JNC) or similar

If employers have jobs that are similar, or rated as equivalent under a job evaluation scheme, any differences in pay between men and women must be justified by your employer. If the difference in pay is down to a reason not contacted with gender, then there is a possible defence.

The Act covers all workers. It does not matter how long you have been employed, or whether you work on a part time - even a casual basis or through an Agency.

A complaint can be made to an Employment Tribunal and an award can be made equal to the difference in pay between the claimant and the person she is comparing herself with. Equal pay cases are often complicated and you should seek professional advice before starting a claim.

From April 2003 you can ask your Employer to provide information on pay rates through an Equal Pay questionnaire.

Equal Pay claims can be difficult to resolve. You have 6 months to take up an equal pay complaint to Tribunal, unlike most other claims which have to made within 3 months.

If you need further help Contact our Advice Line.

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The Right to Statutory Sick Pay

Your employer is not obliged to provide you with a sick pay scheme. There is no legislation which requires any employer to pay you Company sick pay. Your Employer is required to provide you with a statement of your employment terms, which includes details of sick pay from the firm. For information about any company sick pay scheme, refer to your contract or company handbook, or talk to a Representative.

If you are excluded from your Company sick pay scheme for any reason, perhaps because you are part-time, over 65 or on a fixed term contract, you may complain as this is a form of discrimination. If you need further help Contact our Advice Line.

However you could well be entitled to Statutory Sick Pay (SSP). This is a legal requirement. If you qualify for SSP, your employer must pay you (on behalf of the State effectively).Some Employers can recover their SSP payments from the State.

SSP is paid if you qualify in accordance with set national guidelines. From April 2007 the SSP rate is £72.55 per week.

All employers are liable to pay SSP to all eligible employees who are absent for 4 days or more up to a maximum of 28 weeks in one period of interruption of work. These regulations, originally introduced in 1982, have been amended many times.

SSP provides a scheme which gives qualifying employees sick pay on days when they are incapable by reason of sickness or injury of carrying out their normal contractual duties.

Qualifying for SSP - are you entitled?

SSP covers all employees who are aged over 16. It used to end at 65, but not now age discrimination rules have changed.You need to earn sufficient to pay Class I National Insurance contributions. This is often called the Lower Earnings Limit (LEL) and this figure goes up each April.

If you are self employed, you do not qualify for SSP. You cannot claim SSP if you were on strike before falling ill.

• There is no minimum service qualification, if you work part-time you may still be entitled to SSP, it depends on your earnings. From October 2002, employees on short term contracts can get SSP. Previously if your contract was for less than 3 months you were excluded.Due to a court ruling this does not currently apply to Agency staff on assignments of less than 3 months though.

• From 1 October 2006 you can claim SSP if you have continued to work beyond the age of 65. Prior to this date if you were 65 you were excluded from SSP.

• You are not entitled to SSP for the first 3 days of sickness absence - these are called "waiting days".
• However if you have had a period of sickness in the last 8 weeks (56 days), this could well "link" with your current absence. If the 2 absences do link you will not have to wait 3 days on the second occasion, as your original 3 waiting days still count.
• Employees whose average earnings are below the point at which National Insurance is payable are also excluded
• Employees who have recently drawn a state benefit may well be excluded. You will also be excluded once you have started to claim any Maternity Pay or Maternity Allowance.
• Statutory sick pay lasts for a maximum of 28 weeks in any one single period. In order to qualify, you must be absent from work for reasons of sickness or injury for 4 consecutive days. From April 2007 the SSP rate is £72.55 per week.
• Employers are required by law to maintain their records of SSP payments for at least 3 years after the end of the tax year they were paid in.
• Some employers are eligible to reclaim these payments.
• If you are off work for more than 28 weeks in one spell, your entitlement to SSP will end. You may be entitled to claim Incapacity benefit - contact the DSS for further advice

If you think you have been dismissed because your employer wants to avoid responsibility for paying SSP, this could be an unfair dismissal. Claims can be made to an employment tribunal and you do not require 1 years service. If you need further help Contact our Advice Line

If you have a question about your SSP entitlement, talk to your employer or seek advice from the DSS.

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Rights Concerning the Payment of Wages (Unfair Deductions)

Your employer has no automatic right to make unauthorised deductions from your pay - even if you have been overpaid. Some deductions, such as tax and national insurance, are classed as authorised - your permission is not required! You should as a general rule be paid any money you have earned.

Further if your Employer fails to make a payment that was expected by you, for example a Christmas Bonus that you have had for a number of years, this could also be classed as an unfair deduction. In other words it does not actually have to be a deduction, just a failure to pay wages, commission or bonus, that you think is due to you.

It is fundamental to any employment relationship that the employee carries out work for the employer and in return the employer pays for that work. In order for you to be entitled to pay, you must actually undertake your duties, or be ready and willing to perform them. Your contract should tell you how much you are due to be paid. In addition you are entitled to receive a statement of your pay and basic terms, from your employer, within 8 weeks of starting work.

There are special provisions relating to wages which are aimed at ensuring that employers do not withhold or make deductions from wages without authorisation. Legally, an employer is not permitted to make any deduction from your wage or salary unless it satisfies one of the following conditions:-

• The deduction itself is authorised or even required by Statute, for example, the deduction of National Insurance Contributions, a Court Order or tax via the PAYE system. If you think this amount is not correct, contact your local Inland Revenue office.
• The deduction is authorised to be made by any relevant provision in your employment contract. In other words, you have accepted that this deduction can be made, because it is in your contract of employment.
• You have given permission to your employer to make a deduction for a specific matter, perhaps union subscriptions, training costs, relocation costs or social club membership.
• Wages are fairly broadly defined. This will include any sums payable to you in connection with your employment, this would include basic wages or salary, bonuses, commission, holiday pay, Statutory Sick Pay, Statutory Maternity Pay etc.

There are some general exceptions and these are as follows:-

• Any overpayment of wages. Your employer has no automatic right to claw back an overpayment of wages, but the contract may allow this.
• Deductions in connection with statutory disciplinary proceedings, if this is covered in the contract of employment.
• Any statutory obligations to pay specified monies to a statutory authority (as mentioned above, tax and National Insurance).
• Any contractual agreements to pay over amounts to a third party (for example, union subscription deductions).
• Certain jobs, which involve handling cash, (such as shop work) allow the Employer to make deductions for cash shortages. The maximum deduction allowed from your pay packet is 10% of your wages on each pay day. This 10% is from your gross pay, that is before tax and national insurance is deducted - refer to your employment terms for more detail.

Participation by the worker in a strike or other industrial action - if you take part in a strike, or a work to rule for example, your employer can deduct pay without your permission.

If you believe that your employer has made an unlawful deduction, or failed to pay you an amount you are due, you can bring a complaint to a Tribunal. If you need further help Contact our Advice Line.

You should note that the term "deduction" has been given a wide interpretation by the Courts and can include the non-payment of pay, the non-payment of a pay rise, shift payments or other cash additions to which the employee feels entitled. If your employer has, without notice or agreement, stopped paying you a bonus or shift allowance - this can still be classed as a "deduction" from your wage. It may even cover a pay rise you feel entitled to. If you think this has happened to you, contact our helpline for further advice.

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Rights to Guaranteed Pay (if laid off or put on short term working)

Guaranteed payments were introduced in 1975 and the provisions remain although now part of the Employment Rights Act. The aim is to compensate you if your employer sends you home because there is no work to do, or not enough work available. At present, the amount is £19.40 per day (from Feb 2007).

You need to have at least one month's service in order to qualify for a guaranteed payment. These payments fall due when you would normally expect to work but no work is provided by your employer. These payments should be made by the employer for any whole day or days in which work is not available due to a number of reasons. If you do any work on a given day, a guaranteed payment is not payable. You must not refuse to do reasonable alternative work offered by your employer.

Payments should be made to you in the following circumstances:-

• Where there is a reduction in the requirements of the employer's business for work of the kind which the employee is employed to do e.g., a temporary loss of orders; or
• The normal working of the employer's business in relation to work of that kind is affected by any other occurrence - for example, you are laid off due to a fuel crisis.

If you are "laid off" as a result of these issues you should check your Contract of employment to see if there is any mention of lay off pay in these circumstances. If there is nothing in your Contract you should really be paid your normal wage - in other words your Employer needs the right in the contract to lay you off with less than full pay.

If there is a right in the contract to lay you off, the least you are entitled to receive is a Statutory payment per day for up to five working days in any rolling three month period. This amount is reviewed in line with movements in the retail price index, and increased each February. You will not be paid if the lay off is due to a strike or some other action.

Can I claim that I am Redundant?

There are circumstances when you can consider claiming that your job is redundant. This occurs when your Employer is laying you off on a fairly regular basis.

If you are laid off, or put on "short time" working, for a period of 4 consecutive weeks you can ask your Employer about your redundancy pay options - if you wish. This also applies if you are laid off for 6 weeks, or more, in any 13 week period. Take advice before deciding your options.

Where a company has contractual lay off pay agreed with its workforce, they may be exempt from these requirements, because the union may have negotiated better terms. The details will be contained in a collective agreement. Talk to your union representative or if you need further help or Contact our Advice Line.

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The Right to a Minimum Wage

. In 1998, the National Minimum Wage Act came into force. The Act applies to all workers, a wider definition than employees and therefore provides coverage for agency workers, home workers and casual workers in fact most people who are not self-employed.

• The National Minimum Wage adult rate rose to £5.35 an hour from October 2006

• Workers aged 18 to 21 are entitled to a rate of £4.45 per hour .

• The National Minimum Wage applies to workers aged 16/17. You are now entitled to £3.30 per hour, but Apprenticeships are excluded, see below for more on this.

• For workers aged 22 and over, there is a trainee rate of £4.45 per hour. This can apply for up to 6 months subject to compliance with certain conditions.

• Apprenticeships are excluded if the employee is aged under 26 and is in the first year of the apprenticeship, but check your Apprenticeship contract to see if there is reference to pay rates.

• The minimum wage applies to gross earnings and is calculated before tax, National Insurance and other statutory deductions.

• If you are "on call", even if at home, this could qualify for the Minimum wage for each hour, if you have to stay available for work at all times.

• A night watchman qualified for the Minimum Wage for all hours he worked on a night shift even though he was allowed to sleep for long periods! This is because he was at his normal place of work, could not leave, and had to respond to any alarms that went off. This is all working time.

• Your employer is entitled to take into consideration any accommodation they provide for you. This amount is restricted by the regulations.There is a limit on the amount that an employer providing accommodation can count towards your minimum wage pay. The accommodation offset is calculated at a daily rate of £4.15 from 1 October 2006 for each day that your employer makes the accommodation available.This means that the most your employer can stop from your wage is £29.05 per week for your accommodation. No deduction should be made on top of this for any meals provided by your employer or for things like electicity or gas. This increases to £30.10 per week in October 2007 (£4.30 per day)

• People working and living as part of a family, for example and an au pair are exempt from the minimum wage rules.

• You are entitled to the Minimum Wage if you work from home and you are paid piece work for the items you produce. See the information on Homeworkers in the "Your Other Rights" section of this site.

• Employers must keep records of pay and hours worked for all workers for at least three years.

• You can complain to a Tribunal if you are not satisfied by an employer's explanation of your rate of pay.

• Tips paid in cash to you by a customer should not be included in calculating your wage. Tips paid on credit cards to your Employer may be included in your wage, but talk to your Employer or look at your contract to see if this is clear.

• Since 2003, you can claim the Minimum Wage from a previous employer! If you find out that you were not getting the minimum wage from a previous employer contact our advice line.

If you need further help Contact our Advice Line.

You can also contact your local Inland Revenue office as it is their role to enforce the Minimum Wage.

Note: Trainees on Government Funded Schemes (eg New Deal); students on work placements; armed forces; prisoners and voluntary workers are all excluded from the minimum wage entitlement.

If you feel that your employer is not paying you the minimum wage, you can ask your employer for a copy of your pay records. Your employer has 14 days to produce your records for you. You can apply to Tribunal if you have not been receiving the minimum wage.

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