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April 3, 2019
Two Major Changes to Itemised Pay Statements
From 6 April 2019 two major changes to the rules on itemised pay statements take effect.
The Employment Rights Act 1996 has been amended meaning that:
Firstly, the right to an itemised pay statement has been extended to include workers
Secondly, itemised pay statements must include the numbers of hours worked where the employee’s pay varies by reference to time worked
Both changes are a direct response to the Taylor Review of Modern Working Practices that called for greater clarity over pay for UK employees.
The right to an itemised pay statement has been extended to include workers
Only employees were entitled to a payslip prior to 6 April 2019. Workers weren’t entitled by law to a payslip. However, going forward employees and workers are entitled to an itemised payslip.
A worker includes agency staff, bank staff, casual staff and zero-hours contract staff.
Itemised pay statements must include the numbers of hours worked where the employee’s pay varies as a consequence of the time worked
Where a person’s pay fluctuates in accordance to the hours they work, those hours must be shown on the payslip. The hours worked can be displayed as a single aggregate figure, or separate figures for different types of work or different rates of pay.
This only applies to hours worked from 6 April 2019.
What this means for Moorepay Customers
If you are a Moorepay client and currently provide cash only figures in respect of hours worked, please get in touch with your payroll contact at Moorepay who can assist with changing this.
Here’s an example of a payslip showing hours worked:
Moorepay customer who have any questions about the changes to itemised pay statements can call their dedicated payroll contacts.
With 48 years’ experience in payroll, John has worked in both the public and private sector including 18 years in outsourcing. His previous roles include Payroll Manager, Operations Team Manager and Best Practice Consultant. John is responsible within Moorepay for keeping us up to date with all the payroll legislation changes.