Is electronic access to payslips satisfactory to meet your obligation in giving workers an itemised pay statement?

In the recent case of Leedham v Royal Mail Group, the Employment Appeal Tribunal found that giving access to a payslip electronically satisfied the legislation (specifically section 8 of the Employment Rights Act 1996) and there was no need for physical delivery of such payslip.

In this case a Royal Mail employee (Mr Leedham) brought a claim after Royal Mail switched from paper payslips to digital payslips. Mr Leedham had a smartphone and could also have accessed the payslips, for free, at his local library but he did not do so. 

The Employment Appeal Tribunal stated that the purpose of section 8 of the Employment Rights Act 1996 is to ensure transparency of pay, “enabling the worker to understand in an intelligible and reasonably accessible form how remuneration has been calculated and whether any deductions have been made in the pay”. In this case, the Employment Appeal Tribunal held that the Royal Mail had satisfied such a requirement and that electronic access to the payslips was sufficient.

However, as ever, a word of caution; the Employment Appeal Tribunal were keen to advise that each case will turn on its own facts and if there are barriers in place, such as a cost to access the payslips or technical restraints then this may fall foul of the legislation.

For more advice, please contact our Employment Team.