From 6th April 2019 employers will be required to provide all workers with an itemised payslip.
Current legislation requires employers to provide itemised payslips to ‘employees’ for each pay period showing gross pay and any deductions made.
The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2019 will come into force from 6 April 2019 extending this right to workers and requiring certain information to be included on all payslips.
From April 2019, employers will be required to provide the following additional information on every payslip;
- Any variable pay, i.e. the number of hours worked and rate of pay of a worker who’s pay varies by time worked, and
- Any variations caused by unpaid leave or statutory sick pay.
All employees are workers but not all workers are employees. Typically, workers do not have set or regular hours and so the number of hours worked can vary in each pay period. This can often be the case where the worker is working under the terms of a zero-hours contract. These changes are designed to introduce further transparency for workers and employees.
If a worker does not receive an itemised payslip following the introduction of this new legislation, or believes their payslip does not include all the relevant information, the worker will be entitled to pursue a claim in an Employment Tribunal seeking a declaration of non-compliance and if applicable, compensation.
If you outsource your payroll, it would be sensible to check with your payroll provider that they are aware and have taken steps to ensure compliance with the new legislation.
If you would like to discuss the new legislation in more detail, please do not hesitate to contact a member of the Employment Team.
This article is not a definitive statement of the law. It is designed as a free update on the law at the time of publishing. It is not a substitute for legal advice on specific facts and circumstances. BakerLaw LLP and/or the writer accepts no liability or responsibility for reliance on this article and recommends that you seek independent legal advice on your specific circumstances prior to taking any steps.