Payslips become mandatory for all

Almost 300,000 workers who previously did not receive a payslip will now do so starting from this week, including those on casual and zero-hours contracts, as part of the government's Good Work Plan reforms.

From 6 April, payslips will now have to include the number of hours worked – a further 120,000 agency workers will benefit from the scrapping of the Swedish Derogation, which meant certain agency workers were paid less than full time staff, although this will not come into force until 2020.

This new right ensures that all workers receive a payslip, which forms part of the government’s Good Work Plan – the biggest package of workplace reforms for over 20 years. It means payslips now have to include the number of hours worked, making it simpler for workers to make sure they are being paid in full, and at the correct rate.

Ministers also brought into law a package of reforms, which will give workers new rights.

Clare Parkinson, pay and reward expert at Croner said: "The beginning of the new tax year on 6 April 2019 traditionally brings with it a number of new requirements which employers must adjust to. This year is no exception and it is important that businesses understand the changes to payslips that will become effective on this date. Importantly, for pay periods starting on or after 6th April, the right to receive an itemised pay statement will be extended to include both workers and employees. Previously this right was reserved only for employees, however businesses must now ensure 'workers', including casual and zero-hours, also receive detailed payslips on or before the date of payment of salary. A failure to provide an itemised payslip to those with a “worker” status could result in a tribunal claim, especially given the attention surrounding workers’ rights.

Those who fail to receive their payslip on time, or receive the payslip without the necessary information, may make a claim to the employment tribunal that their right has been breached. If the tribunal agrees that this is the case, they will make a declaration and, in some cases, award the employee an amount equal to any deductions which have been made in the previous 13-week period. A significant change to the new payslip rules means that the total number of hours worked must be included on payslips for all workers whose pay varies depending on the amount of time worked.

The rules on this can be tricky; all hourly paid workers will be within the scope of this new requirement, as well as salaried hours staff who are paid the same each month for their basic hours but also work overtime and receive extra money for this,’ Parkinson said. ‘In the latter scenario, the payslip will only need to show the hours relating to the overtime, and not the salaried work, because it is the overtime that has made pay vary. Where the number of hours is to be included, the hours must be clearly listed as either one total of all the hours which vary pay, or separate hourly figures for each variation of pay."

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