As some of you may be aware, there is a New Legislation that applies from 6th April 2019 that will require all employers to (a) provide payslips to all workers, and (b) show hours on payslips where the pay varies by the amount of time worked.
This guidance is to help employers, workers to understand the basics with the new legislation. Please find the main changes as follows:
Showing hours on payslips
Where pay varies by time worked From April 2019 additional information must be shown on a payslip for workers whose pay varies depending on the number of hours they have worked. The hours can be shown either as a single total of all such hours in the pay period, or they can be broken down into separate figures for different types of work or different rates of pay. It should be clear which pay period they were worked in. They only need to be shown for pay periods which begin on or after 6 April 2019. The hours that must be shown on a payslip are a separate matter from the number of hours worked for National Minimum Wage (NMW) purposes (although for workers who are paid by the hour, they may well in practice be the same).
Variations caused by unpaid leave or statutory sick pay
If a worker’s pay does not vary by time worked (for example because they are paid a fixed salary each month) there is no need to include an hourly figure to account for variations in pay caused by taking unpaid leave or being on statutory sick pay. Such cases do not amount to pay varying depending on the amount of time worked, but rather to pay varying because of a departure from the normal working and pay arrangements, caused by the unpaid leave or statutory sick pay. However, if a worker is paid according to the amount of time worked and takes unpaid leave or receives statutory sick pay any hours they did work will still need to be included on their payslip.
Enforcement
A worker who thinks that they have not received a payslip, or that the payslip they have received lacks the required information, may bring a claim before an Employment Tribunal.
For more details on the upcoming changes speak to one of our Payroll Experts.
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