What do employers need to know about UK Payslip Law 2018/2019?
In essence, following the introduction of this legislation, you will required by law to:
A) Provide itemised payslips to all workers – including permanent, casual and zero hours staff
At present, the statutory right to receive an itemised payslip only applies to employees, a subcategory of workers. However, from 6 April 2019, this right will extend to all workers and can be provided in either physical or electronic format.
B) Include hours on payslips (in cases where the worker’s pay varies by the amount of time they have worked)
From April 2019, workers whose pay varies depending on the number of hours they have worked will have the right to receive additional information on their payslip detailing the number of hours they have been paid for and how their pay has been calculated.
For workers who receive a fixed salary each month, payslips will not need to display the worker’s hours as their pay does not vary based on the amount of time they have worked.
Employers will also not need to include an hourly figure to reflect unpaid leave or statutory sick pay. However, if they work occasional overtime paid at an hourly rate, this would need to be shown.
Hours can be shown as the total number of hours worked – making clear what period they were worked in – or broken down further into different types of work or different rates of pay. Don’t forget, if you need advice, Ellis Whittam’s HR Specialists will be able to keep you compliant.