As part of their response to the Taylor Review of modern working practices, the government announced they would introduce greater rights for workers.
One such introduction was the new right to receive a written, itemised payslip. This right was previously only afforded to those classed as ‘employees’ with the payslip clearly setting out how they’ve been paid and whether any deductions were made from their pay. This created a higher degree of certainty and transparency in pay for employees, whilst often leaving workers unaware of how their take-home pay had been determined.
The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) (No. 2) Order 2018 has now been passed by Parliament which extends the right to receive a payslip to workers. The Order also grants workers a right to bring enforcement action in the employment tribunal against organisations who fail to provide them with a payslip, whether in full or because the statement does not comply with the statutory requirements.
The Order will take effect from 6 April 2019 and will apply to wages paid to workers from this date.
From the same date, there will be a new requirement for organisations to include the total number of hours worked on all payslips where the individual’s wage or salary varies depending on how much time is worked. This figure can either be stated as a single total or separate figures where the hours worked relates to different types of work or different rates of pay. This new requirement is, again, focused on improving transparency and certainty regarding how wages or salary is calculated, especially for those who work irregular or non-guaranteed hours of work.