Payslips to include itemised hours and rates

Not long ago, we updated you on important amendments to payslips that were to come into effect on 6 April 2018. Things are set to change again soon, however, so employers need to take note. An amendment to the Employment Rights Act 1996 means that every employee will be legally entitled to an itemised payslip, which will be enforceable before an employment tribunal. Currently, employers are only required to produce itemised payslips for ‘employees’, but will have to do so for ‘workers’ from the 6 April 2019. This won’t apply to any payments made in respect of a period of work which commences before this date.

Employees will have the right to view the total numbers of hours worked for their employer as either a single figure or individual figures for different kinds of work, however this doesn’t include wages or salary paid for work done before the date.

At the moment, payslips should include:

  • the gross amount of the wages or salary
  • the amounts of any variable or fixed deductions from that gross amount (and the purposes for which they are made)
  • the net amount of wages or salary payable; and
  • where different parts of the net amount are paid in different ways, the amount and method of payment of each part-payment.

However, where the amount of wages or salary the employee or worker receives varies by reference to time worked, the Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 will require their payslips to include information about the total number of hours worked by the employee or worker for which they are being paid, either as a single aggregate figure or separate figures for different types of work or different rates of pay. Again, this Order will come into force on 6 April 2019.

In short, the amendments require that hours are stated on the payslip for ‘time-paid’ workers, and itemised pay statements are required on the payslip for all workers.

Need some expert advice on the changes to payslips? Contact Alison via email for more information.

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