Are digital payslips enough? What a recent tribunal decision means for Direct Payment employers

Are digital payslips enough?

What a recent tribunal decision means for Direct Payment employers

A recent Employment Appeal Tribunal ruling has confirmed that employers can legally issue digital payslips, without needing to provide paper copies — but only where access is genuinely available to the employee.

The case, Leedham v Royal Mail Group, centred on whether making payslips available via an app or online portal meets the legal requirement to provide an “itemised pay statement”. The Tribunal confirmed that it does. The law is not about physical delivery — it is about ensuring workers can see and understand how they’ve been paid.

What this means in practice

The key message from the ruling is simple:

Digital payslips are compliant — but only if they are genuinely accessible.

The Tribunal made clear that if an employee can reasonably access their payslip, without cost or difficulty, the employer will meet their legal obligation.

However, if there are barriers — such as lack of technology, digital confidence, or practical access — the employer could still fall short.

What this means for Direct Payment employers

For individuals employing carers through Direct Payments, this is particularly important.

Unlike larger organisations, Direct Payment employers are:

• Often employing someone on a one-to-one basis
• Not supported by internal HR infrastructure
• Working with employees who may have varying levels of digital access or confidence

This makes accessibility a key consideration, not just the format of the payslip.

How PayPacket supports compliance

At PayPacket, we issue payslips through a secure online portal, giving employees easy access to their pay information at any time.

Crucially, we don’t take a “digital only” approach in isolation — we work with our clients to ensure that:

• Payslips are accessible to each individual employee
• No employee is excluded due to lack of technology or digital confidence
• Alternative solutions are available where needed

This means our clients can be confident they are not just using a modern system, but one that aligns with the underlying legal requirement: transparency and accessibility.

The PayPacket view

For Direct Payment employers, compliance is not just about issuing payslips — it’s about making sure their employee can actually access and understand them.

That’s why our approach is built around:

• Flexibility, not rigid processes
• Practical support for real-world situations
• Ensuring every employment arrangement works for both employer and employee

Because in a sector supporting vulnerable people, what works in theory doesn’t always work in practice.

Final thought

This ruling reinforces an important principle:

It’s not how you provide payslips that matters — it’s whether the employee can access them.

By combining secure digital delivery with a flexible, person-centred approach, Direct Payment employers can remain compliant — and confident — that they are meeting their responsibilities.