Changes To Payslips – Are You Ready?
On 6th April 2019, new legislation is coming into play that will change how employers provide payslips to their workforce.
Under the amendment to The Employment Rights Act 1996, employers will be required to provide a payslip to all workers, not just employees. This will include all agency, bank staff, casual and zero-hours staff who may not have a contract but are drafted in when required on a casual basis.
In addition, as of 6th April payslips will also need to show the total number of hours worked. The hours can be shown as a total number, or broken down into hours against each pay rate if multiple pay rates have been applied for overtime, shift bonuses, etc. Where a worker has a fixed salary each month but variable over time with additional pay at an hourly rate, only the overtime hours would need to be shown.
To summarise, the following details will need to be included on payslips from 6th April 2019:
- Gross wages or salary
- Net wages or salary payable
- Deductions (Tax, NI, etc)
- A single or combined amount of hours or
- An itemised list of hours worked for different rates of pay
The amendment to the act has come about from recommendations by The Taylor Review of Modern Working Practices in 2018, with the main aim of increasing the transparency between employers and employees. In particular, it is hoped that the changes will ensure that National Minimum Wage, Holiday & Sick pay are all being honoured by employers. Payslips can be provided as either a physical slip or in an electronic format that can be printed if required by the worker.
If you’re interested in learning more about how you can integrate your payroll system and your Time & Attendance software to ensure all hours worked and pay rates are logged correctly, please contact the team by emailing firstname.lastname@example.org .
Full guidance from the Department of Business, Energy & Industrial Strategy can be found here