Advice on issuing payslips under new statute

The APHC is advising employers on how they can stay within the law following changes to how payslips must be issued. Set to launch on 6th April 2019, the new statute gives all workers the right to receive an itemised payslip. Previous to that date, only staff classed as ‘employees’ needed to receive written itemised payslips; staff classed as ‘workers’ did not.

The Department for Business, Energy & Industrial Strategy (BEIS) has published guidance on the legislation which can be viewed in full by clicking here

Like employees, workers have a contract for work, by unlike employees, there is usually no ‘mutuality of obligation’ between a worker and employer. This means employers don’t have to offer workers work, and workers may turn down any work offered. Workers also have fewer rights than employees. For example, workers don’t have the right to protection against unfair dismissal or statutory notice periods. Common types of workers are zero hours’ and casual workers who do plumbing work as and when a company needs them.  

As of 6 April, the difference between a worker and an employee will no longer matter, and everyone will fall under the same rules. This means that employers will need to look into their workers’ payslips carefully and ensure that they break down workers’ payslips according to pay and deductions.

Payslips will have to include:

      Gross salary before deductions

      The amounts deducted from pay and for what reason.

      The net amount due after deductions.

      The amount and method of any part-payment (i.e. if work is paid in part by cash and BACS transfer).

      The hours where pay varies (i.e. where different amounts are paid for over-time or working certain hours).

Employers need to ensure they are prepared for these changes, because a worker who doesn’t receive an itemised payslip will be able to take an employer to an employment tribunal. Plus, itemised payslips will make it much easier for HM Revenue & Customs to find and prosecute employers who pay below the national minimum wage, and employers who charge for uniforms and equipment need to ensure their practices are compliant since such charges can tip pay below the minimum wage.  

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