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UK Payslips: Changes to the Law in April 2019

On 6th April 2019, new legislation comes into effect which requires all workers to be given itemised payslips.

It was noticed by UK Government that some employers had been either inadvertently or deliberately, flouting UK Employment Law and denying some employees their rights to minimum pay. For zero or low hour contracts, many companies were requiring their workers to be available on demand, yet with no or limited guarantee of work or pay. As a result, employers were not meeting their obligations with regard to deductions and employee rights.

Many employees were finding it hard to equate their actual time worked with their actual pay received, therefore, the government decided to make changes to payslips and help employees see if they are being paid correctly.

Who will the new payslip changes affect?

Sometimes, it can be difficult to distinguish the difference between an employee and a worker, but an employee is someone who works for you and has a contract of employment. However, a worker can be associated on a more casual basis, such as, agency staff and zero-hours staff.

New changes reveal that all workers are entitled to a payslip and must be itemised on or before every payday. On each payslip, you will have to include the actual hours your staff have worked if their pay isn’t always identical.

The reasons for this is because it’s easier for you to check if staff have been paid correctly and if they’re getting the right hourly pay according to the new National Minimum Wage rates.

Although, there will be more pressure on you to pay your staff in line with the NMW, if they know they’re not getting paid correctly, you could be faced to a tribunal for an unlawful deduction from their salary.

On the other hand, according to the employment law, these are some workers whom won’t be affected by the new changes:

  • A contractor or freelancer
  • In the police service
  • A merchant seaman
  • A master or crew member working in share fishing

What do I need to do to start preparation?

  • Review payroll processes and check compliance with this new law
  • Record actual hours staff have worked

If you think you will be affected by the new payslip law changes and would like more information, please contact our payroll department using the following details.

01908 219100

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Posted in: HMRC, Staff - Payroll, Wages