04 Sep Showing Hours on Payslips from April 2019
Showing Hours on payslips – April 2019
Do you employ casual or non-contracted workers?
Are your staff paid for the hours they work fluctuating each payday?
If you can answer yes to the above then you need to take note of the changes coming in April 2019 with regard to payslips. April 2019 will bring a series of legislative changes that employers are going to need to be prepared for. So what exactly is coming?
We are all aware about minimum wage changes and another pension contribution increase next year. However, what some employers may not be aware of is that there is going to be a crucial change to section 8 of the Employment Rights Act 1996.
The change will affect anyone who receives a payslip. Employers will be obliged to present all of their workers with an itemised pay statement. This applies to not just “employees” but also “workers” who may not currently be processed through the payroll system, and should provide a greater degree of transparency for the worker to establish the hours of work for which they are being paid. More information on employment status can be found here: https://www.gov.uk/employment-status.
On top of that, in the case of employees whose pay is dependent on the time worked, the number of hours worked must be shown on their payslip.
What do you need to do?
For some employers this may mean no change to their current system, but others will be forced to invest in a payroll software, or consider outsourcing their payroll requirements to someone who has the software and necessary knowledge.
The other major change is that employers must provide payslips for ALL their workers from April 2019. They must also “include the hours worked on itemised pay statements, but only if the pay varies as a consequence of the time worked”. So those staff filling out timesheets with fluctuating hours will need those hours displayed on every payslip.
Similar to National Minimum Wage (NMW) implementation, the new amendment will not apply to wages, or salary paid in respect of a period of work, which commences before the date the order comes into force on 1st April 2019
The reason for this latest change is that by introducing these changes the Government hopes to reduce the NMW violations and encourage better transparency, which in result will lead to workers being more in control of their rights.
For more information on our outsourced Payroll services , click here or contact us via the EA Assist website, or telephone 01379 646943