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The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) (No.2) Order 2018 has been made.
The Order amends the Employment Rights Act 1996 to provide all workers with a right to an itemised payslip. This will alter the current position whereby only those classified as ‘employees’ are entitled to receive a payslip.
Employers will also need to specify the hours being paid for on the payslip where a worker is paid by reference to time worked. This must be done with a single aggregate figure, or separate figures for the different types of work or different rates of pay. This is intended to help low paid workers determine whether they have been paid correctly.
The changes come into force on 6 April 2019 and will not apply to wages or salary paid in respect of a period work that commences before this date. The changes will not apply to individuals that are engaged as self-employed contractors.
It is recommended that employers review their payroll systems in advance of April 2019 to make sure that every worker is receiving a payslip and that these include all the necessary information.
If you would like to speak to one of our employment solicitors regarding the new law, please contact us on 0161 941 4000 or email us lawyers@myerson.co.uk.
