Employment rights act 1996

The Employment Rights Act affects all areas of payroll administration.

Employees should be provided with terms and conditions of employment within 8 weeks of starting.

Employees should be provided with a contract of employment detailing:

• Salary / rate of pay.

• Frequency of pay.

• Method i.e. Bank transfer or cash.

• Number of holidays.

The contract may refer to supporting materials such as employee handbooks.

• Termination of employment rules.

• Details of notice periods should appear in an employee’s terms and conditions of employment.

• The calculation of termination payments should be consistent.

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Illegal deduction of wages

The method of calculation is not covered but no illegal deductions of wages can take place.

Section 13 states that no employee should suffer an illegal deduction of wage.

Deductions can only be taken if:

• The deduction is included in a signed contract of employment.

• Statutory provision – HMRC.

• The employee has provided written consent.

• Employers can be taken to tribunal if an illegal deduction takes place.