New legislation came into force this month regarding employees’ payslips. There are two issues which are being amended:
- Firstly, under the new system employers will need to provide itemised payslips to every worker on their payroll, not just those classified as ‘employees’. Currently, employers are not obliged to issue payslips to contractors, freelancers, and other types of ‘non-employee’ workers. A payslip may be provided in either a physical or electronic format.
- Secondly, additional information needs to be shown on workers’ payslips where pay varies depending on the number of hours they have worked. Where this applies, the number of variable hours needs to be shown, although any hours that do not vary, need not be detailed. For example, where an employee with a fixed salary each month works additional overtime at an hourly rate, only the number of overtime hours needs to be shown.
Workers who do not receive payslips, or whose payslips lack the required information, will be entitled to bring a claim before an Employment Tribunal, so it is important that employers are complying with the new legislation.
If you require help in administering your payroll, contact our dedicated Payroll team who will be happy to help.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.