UK payslip law is changing: next month, changes to the way employers issue payslips will come into force under the Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018.
To summarise the changes being made to payslip legislation, we’ve put together a handy guide below.
To view this information as a PDF and access the links above, please click here.
Payslip law update overview
In conclusion, employers will need to ensure that all workers, not just those with regular hours, receive payslips before or when they are paid. Payslips must detail the following information:
- Pay before deductions (gross pay)
- Any deductions (such as tax and national insurance)
- Pay after deductions (net pay).
In addition, employers must list the number of paid hours someone works but only when wages/salary varies in relation to amount of time worked.
This important update to UK law will provide employees with greater clarity and transparency over their pay, especially those who work varied hours resulting in pay changes each period. The change will also enable any errors to be identified and remedied easily.
Before 6th April 2019, businesses should ensure that:
- Their HR team is aware of the new changes coming into force
- Review and amend the format of their payslips to meet the new requirements
- Adjust payroll processes to collect the new information required
- Include the new information, where applicable, on payslips from 6th April 2019.
For full guidance and case studies, visit The Department for Business, Energy and Industrial Strategy (DBEIS)’s website here.