Pay and benefits templates toolkit

• The UK has a national minimum wage, which sets out the minimum hourly rate that employers must pay their employees. The rate varies depending on the employee's age and whether they are an apprentice.

• Employers must provide employees with a payslip that sets out their pay and deductions, including tax and National Insurance contributions.

• Employees have a legal right to receive equal pay for equal work. This means that employers must ensure that employees are paid the same rate for the same or similar work, regardless of their gender, race, age, or other protected characteristics.

• Employers can provide their employees with a range of different benefits, such as pensions, private medical insurance, and flexible working arrangements. These benefits can be used to attract and retain staff, as well as to improve employee wellbeing and job satisfaction.

• Employers have a legal obligation to provide their employees with a workplace pension scheme, and to contribute to that scheme on behalf of their employees.

• Employers must comply with relevant legislation when calculating and paying employee salaries and benefits, including the Income Tax (Earnings and Pensions) Act 2003, the Equality Act 2010, and the Pensions Act 2008.

• Failure to comply with pay and benefits legislation can lead to legal claims from employees, including claims for breach of contract, discrimination, and unlawful deduction of wages.

Navigating Pay and benefits processes correctly is crucial to help you avoid any problems (which can be costly in terms of time, money and reputation).

Recent UK case law has highlighted key aspects of good Pay and benefits management. Knowing how courts have handled claims can help you assess whether your proposed actions are likely to be seen as reasonable.

Here are some notable rulings and their implications:

• Asda Stores Ltd v Brierley and others (2021): This landmark case dealt with equal pay claims by predominantly female retail employees against predominantly male distribution employees. The Supreme Court ruled that the two groups could compare their roles for the purposes of equal pay claims, allowing the case to proceed to the next stage of deciding if the work is of equal value.

• Samira Ahmed v BBC (2020): In this case, journalist Samira Ahmed claimed that she was underpaid compared to her male colleague, Jeremy Vine, for similar work. The Employment Tribunal ruled in her favour, concluding that the BBC had not justified the pay difference, highlighting the ongoing issues of gender pay disparities in high-profile organisations.

• Pimlico Plumbers Ltd and another v Smith (2018): Although slightly older, this case remains influential. The Supreme Court ruled that a plumber who had worked solely for Pimlico Plumbers was entitled to workers' rights, including holiday pay, even though he was technically self-employed. This case has had significant implications for the gig economy and the classification of workers.

• Antuzis v DJ Houghton Catching Services Ltd (2019): This case involved Lithuanian chicken catchers who successfully claimed that their employer had unlawfully deducted wages and failed to pay the minimum wage. The High Court ruled in favour of the workers, reinforcing protections against wage theft and ensuring compliance with minimum wage laws.

• Uber BV v Aslam and others (2021): In a highly publicised case, the Supreme Court ruled that Uber drivers are workers, not independent contractors, entitling them to benefits such as the National Minimum Wage and holiday pay. This ruling has had broad implications for the gig economy, affecting how companies classify and compensate their workers.