New laws in force relating to itemised pay statements
From 6 April 2019, the Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) (No 2) Order 2018 (SI 2018/529) and Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 (SI 2018/147) will come into force and introduce specific requirements in relation to itemised pay statements, ie payslips.
Why does it matter?
The right to receive a written itemised payslip will apply to workers as well as employees.
All payslips must include:
- the gross amount of the wages or salary
- net amount of wages or salary payable
- amounts of any variable or fixed deductions, and the purposes for which they are made
- total number of variable hours worked (when workers and employees get a different wage depending on the hours they have worked).
What action should you take?
Review current pay statements to identify any missing information which you will be obliged to supply when making payments.
Ensure your payroll software is updated to be able to implement these changes.