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Itemised payslips on the horizon

on Thursday, 04 October 2018.

Itemised payslips on the horizon

Employers have been reminded of the new payslip rules that come into force from 6 April 2019.

The main change will mean that any worker paid on an hourly basis will be due a payslip showing the number of hours that they have worked. The aim is to help workers establish whether they have been paid the correct amount under National Minimum Wage rules.

In addition, workers must be issued with a written, printed or electronic payslip which details how the payment was calculated in cases where the rate of pay and hours is variable.

In a comment supplied to professional membership body FCSA, Brabners LLP highlighted that businesses must take steps to ensure that they are able to comply with the updated legislation in readiness for 6 April 2019.

“From a practical perspective, businesses should ensure that they are collecting accurate and appropriate information on pay, which can then be converted into an appropriate payslip for their workers. There needs to be adequate systems in place to record information on pay for both employers and workers and checks should be carried out on the format of payslips to ensure all required information is provided.”

The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 (the Order) will give an employee the right to receive certain information about their employment. Currently, employers only have to provide details about the gross amount of wages or salary, any deductions made and the net amount received.

The amendment to the Act means that employers will need to show the aggregate number of hours worked for which payment is being made; or give separate figures for different types of work worked – or where different rates of pay are paid for the work done.

The Government has also introduced the Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) (No. 2) Order 2018, which will extend the right to receive a payslip to all workers.