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Is It Illegal to Not Give an Employee a Payslip?

Is It Illegal to Not Give an Employee a Payslip?

If you hire employees, paying them fairly is crucial to running a successful business. However, providing accurate payslips is just as important.

4th June 2019

People work for compensation, and in many cases it is illegal not to remunerate your employees. This arrangement is formed in an employee agreement. However, alongside paying your employees correctly, you also need to make sure it’s recorded correctly through providing them with a payslip. In this article, we’ll outline your obligations when it comes to giving employees payslips.

Your responsibilities as an employer

As an employer, you need to fulfil a number of responsibilities owed to your employees. One of these responsibilities is that you must issue a payslip to your employees within one day of payment, and in a manner which is easily accessible to employees. In today’s modern world, you may issue payslips online or via email. However, you must ensure that your employees receive these payslips – no matter the format. Information about payslips and these responsibilities as an employer can be found on the Australian Government Fair Work Ombudsman website.

A payslip must include the following information:

  • the amount of pay, both gross (before tax) and net (after tax);
  • the date of receiving the pay;
  • the pay period;
  • any loading, bonuses or penalty rate entitlements;
  • deductions;
  • superannuation contributions including the name of the super fund;
  • the employer’s name and ABN if they have one; and
  • the employee’s name.

Responsibilities of employees

Like with any symbiosis, the efficacy of the relationship can be dependent on mutual cooperation. The assurances provided under fair work laws are just as relevant to employees as they are employers. As an employee, you are entitled to payslips. You must nonetheless ensure that you provide your employer with the most suitable information required in order for you to successfully receive those payslips. It is also important to note that if you are not receiving your payslips, you must bring this to your employer’s attention.

If a payslip isn’t provided

Fair Work Inspectors can give employers a fine, called an infringement notice, if they:

  • Don’t include the right information on a pay slip
  • Don’t issue pay slips at all or within 1 working day of paying employees.

It is unlawful for employers to give pay slips that they know are false or misleading. This can lead to disputes down the line regarding remuneration.

How can I rectify errors in the payslip

The best way to deal with a problem initially is to start by talking. Open dialogue between parties can be a good way to either prevent problems arising in the first instance or fix them when they do happen. It is understandable that mistakes can happen in a busy, fast paced, and demanding work environment, but it is very important to deal with problems as soon as they arise. More information for resolving workplace disputes can be found on the Fair Work Ombudsman website. It may also be in your interests as either an employer or employee to get in contact with a suitable workplace employment lawyer should the problem persist.

Don’t know where to start? Contact a Lawpath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.

Author
Paul Taylor

Paul is an intern at Lawpath, and is currently studying a combined Arts/Laws degree with a major in criminology at Macquarie University. Paul has an interest in legal tech, which complements his broader interest in cyber crime/security and the way in which it is changing the world.