18 May 2022
Who would have thought that a simple payslip would have so much emphasis in the Employer and Employee relationship?
It might seem basic but its actually illegal not to provide a payslip. Without getting too technical, the Fair Work Act states that “An Employer must give a payslip to each of its employees within one working day of paying an amount to the Employee in relation to the performance of work.”
This is a system of ensuring that both the Employer and Employee know their respective entitlements and responsibilities under an applicable award or Employment Contract.
Payslips effectively show both parties how their wages have been calculated. It is a mechanism to reference any records so that irregularities can be contested and if established, quickly corrected.
It also supports the notion of record keeping and accuracy. By providing payslips, it ensures that there is a fair system of wage regulation. For Employees who are considered vulnerable this is a simple mechanism that enables them to take charge of their own financial circumstances.
By having a payslip, they can clearly see what their ordinary rate is Monday to Friday, Saturday and Sunday and Public Holidays. As well as any allowances they might be owed. It also enables them to budget and make informed decisions about whether they will elect to continue working in the same manner if given the choice!
Being deprived of payslips, employees are significantly disempowered in a world where we value transparency, open communication and freedom of information. Simply providing payslips is an easy and comprehensive way to support employee engagement. Given the shift to single touch payroll, the systems now enable you to simply email this information across at a click of a button.
