Itemised pay statements when software sets pay (UK)

When pay is worked out by software, from clocked hours, completed tasks or shift data, the payslip is often the only place a worker can check the result. The law in Great Britain sets out what every payslip must show, so that a worker can see how the figure was reached and spot deductions they did not expect.

The short answer: every worker, not only employees, has the right to a written itemised pay statement at or before each payment. It must show gross pay, each deduction and its purpose, net pay, how any split payment was made and, where pay varies with time worked, the hours paid for (Employment Rights Act 1996, s8).

What the payslip must show

The statement must contain (s8(2)):

• the gross amount of wages or salary;
• the amount of each variable deduction and, subject to the rule on fixed deductions below, each fixed deduction, with the purpose of each;
• the net amount payable;
• where parts of the net amount are paid in different ways, the amount and method of each part;
• where pay varies by reference to time worked, the total hours worked for that variable pay, either as one figure or as separate figures for different types of work or rates of pay.

It must be in writing and given at or before the time of payment (s8(1)). The hours requirement matters most for pay set by scheduling or time-tracking tools: a worker paid by the hour can compare the hours on the payslip with their own record.

Fixed deductions

An employer may show fixed deductions as a single total on the payslip if it has given the worker a separate written standing statement of fixed deductions. That statement must give, for each deduction, the amount, how often it is made and its purpose (s9(1) and (2)). It can be amended by written notice, must be re-issued in consolidated form within twelve months and then at least every twelve months, and stops being effective if it is not (s9(3) to (5)).

If the payslip is missing or incomplete

A worker can refer the matter to an employment tribunal, and either side can ask the tribunal to decide what a pay statement should have contained (s11). A question solely about whether an amount shown is accurate is not covered by this route (s11(3)(b)). If the tribunal finds that no pay statement was given, or that a deduction was not properly itemised, it must make a declaration to that effect (s12(3)). It may also order the employer to pay the worker up to the total of unnotified deductions made in the thirteen weeks before the application, whether or not the deductions were in breach of contract (s12(4) and (5)). After employment ends, the reference must be made within six months of the end date, with an extension for Acas early conciliation (s11(4) and (6)).

Practical steps

• Employers: check that the payroll system prints hours for every hourly or time-based element, names the purpose of every deduction, and issues payslips on or before payday to all workers, not only employees. If you use a standing statement of fixed deductions, diarise the twelve-month re-issue.
• Workers: keep your payslips and your own record of hours and tasks. Compare the hours shown with the hours you worked, and ask in writing about any deduction you do not recognise; see unauthorised deductions from wages. For whether a pension deduction should appear at all, see pension auto-enrolment. To check the rate against the law, see AI and the minimum wage; for the terms your pay should follow, see your written statement of terms.

These sections extend to England, Wales and Scotland. This page is general information on the law in Great Britain as at 1 November 2026, not legal advice.