Since a law was passed on March 4th 1931, as an employer you have been required to provide your employees, generally once a month, with a supporting document known as a payslip.
This document informs them of the amount and composition of their salary and the social security contributions deducted. This enables the employee to check the accuracy of the amount paid by means of the detailed statement on the payslip. This can be done by any means (by hand, sent by post or in electronic form, which is increasingly used, unless the employee objects).
If you fail to issue this payslip, you run the risk of being taken to the industrial tribunal (Conseil de prud’hommes). In this case, the judge may order that the payslip be issued, subject to a fine, and order you to pay damages, provided that your employee can prove that he has suffered a loss. In addition, repeated failings (failure to issue payslips, late issuance or irregularities) may constitute misconduct on your part, justifying termination of the employment contract by your employee. This could have the same effect as dismissal and give rise to a 3rd class fine of up to €450, imposed as many times as there are payslips missing. Finally, you could be guilty of concealed work (3 years’ imprisonment and a €45,000 fine). As payslips contain personal data, you must ensure that you do not give an employee’s payslip to another employee or to third parties, except where this is necessary for the recognition of trade union discrimination, for example, in the event of a dispute.
It may also be in your interest to obtain a payslip from an employee who works part-time for another employer, in order to fulfil your obligation to comply with maximum working hours. Your employee’s refusal to provide this document may constitute serious misconduct making it impossible for the employee to remain with the company.
However, payslips may also be of interest to the labour inspectorate, which may ask to see them (Article L.8113-4 of the Labour Code). However, they are not allowed to take them away from the company, on pain of nullity of the inspection. This obligation to provide information also extends to collection inspectors in the event of an URSSAF inspection (Article L.243-12 CSS), the purpose of which is to check that social security contribution regulations are being properly applied.
Finally, the tax authorities may also have an interest in requesting (albeit less frequently) this payslip (Article L.82B of the Book of Tax Procedures)
The recommendation to these bodies is not to oppose their request, as your refusal would either:
- constitute an obstacle to the inspection and be considered a criminal offence (labour and tax authorities);
- or give rise to penalties (URSSAF inspection).
Payroll management is of crucial importance to your business. We can help you manage your payroll and social security contributions, whatever your business or the size of your organisation. COGEP offers a modular package that adapts to your needs.
Focus on keeping payslips
- Employer’s obligations: retention of a duplicate payslip on paper or electronically: 5 years but remember that tax legislation requires them to be retained for at least 6 years. If an electronic payslip is used, the employer must guarantee that the payslip will be available for 50 years or until the employee reaches full retirement age plus 6 months.
- Obligation of the employee: retention for an unlimited period, as indicated on the payslip.
