Employer reminder: new payslip legislation comes into force this April
From 6 April 2019, employers must provide detailed and fully itemised payslips for casual, agency and bank staff and zero-hours workers.
The legislation, which already applies to permanent employees, is designed to make it easier for workers to understand their pay, ensure they are being paid correctly and challenge their employer if they have been underpaid.
It compels employers to make it clear exactly what hours they are paying staff for, thus making it more straightforward for those who work varied hours.
What exactly must the new payslip show?
- The exact number of hours the worker is being paid for;
- The gross and net amount of wages or salary payable;
- The rate for each hour where workers do varied hours or have various roles with different rates of pay;
- Earnings before and after any deductions;
- Deductions in each payment period such as tax and National Insurance;
- An explanation of any fixed amount deductions.
In 2016/2017, the Treasury collected £819 million of additional tax revenue from business payroll investigations so it is vital that employers make sure they are ready to comply with the new legislation.
For help and guidance about this area of the law, please contact Wards Solicitors' Business Employment team or Employment Law Specialist Solicitor Julia Beasley directly.