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Help for small firms

Help for small firms: Handling pay and wages

Importance of getting pay correct

Pay is one of the most important parts of any employment relationship. You must pay your workers in accordance with the law and with their contracts of employment.

From time to time issues regarding pay and wages may arise and the way you handle these can have a huge effect on workplace morale and productivity.

Many pay and wages issues can be dealt with most effectively if you fully understand your pay processes and legal obligations to your workers. If any mistakes, misunderstandings or disputes occur, you should then be able to take action to resolve the matter swiftly. Where issues with pay are not handled correctly and are left unresolved, it could lead to court cases or employment tribunal claims.

This guide is aimed at small firms and line or team managers in larger organisations. It offers steps you should consider following to prevent pay problems arising.