payslip

Our previous blog 'Payslips and Variable Pay' highlighted forthcoming legislation that makes changes to the obligations on employers to provide payslips to staff. In December, new guidance was published to help employers understand the new legislation.

So what do I need to know?

There are three main changes under the new rules:

1. Workers are entitled to payslips

Currently, only employees have to receive a payslip. From 6 April 2019, all workers must receive a payslip. Guidance on whether a person is a worker can be found at www.gov.uk/employment-status/worker but you can also speak to your legal advisor for advice.

2. Payslips must show hours where pay varies by time worked

Where pay varies depending on the number of hours worked, the payslip will, from April, need to show the number of hours paid for on this basis. The hours can either be shown as a single total of all such hours in the pay period or they can be broken down into separate amounts for different rates of pay.

A salaried employee who takes unpaid leave, or is in receipt of statutory payment such as; statutory sick pay or statutory maternity pay during a pay period, is not counted as someone whose pay varies by time worked. This means that there is no need to include an hourly figure on the payslip to account for these variations in pay.

3. Enforcement

Any worker who has not received a payslip, or who thinks their payslip does not contain the necessary information, can bring a claim before an Employment Tribunal. If the claim succeeds, the Tribunal may make a declaration, published on its website, and/or can order repayment of any unnotified deductions made in the 13 weeks before presentation of the claim, even if the employer was otherwise entitled to make the deductions.

 


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Author: Lucy Gordon

Senior Solicitor, ESP Law Ltd

Lucy is an employment solicitor who brings to ESP over a decade’s experience at DLA Piper, one of the world’s most prestigious law firms. At DLA Piper, Lucy was involved in a number of global projects for major international customers and handled a varied case-load of employment matters for a range of UK clients, including complex Employment Tribunal cases involving whistleblowing and TUPE.