Employers will have to itemise payslips for employees’ wages which vary depending on how much time they have worked under new rules introduced by the Government.
The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 was laid before Parliament earlier this month.
Under the Order, which is due to come into force on 6 April 2019, employers must also include the number of hours they are paying the employee for.
From next April, employers must either:
- Show the combined number of hours worked for which payment is being made, or;
- Itemise the figures for different types of work worked and/or different rates of pay.
This change to legislation is aimed at employees who work varied hours and whose pay changes accordingly. Itemised payslips will increase transparency for both employers and employees alike.
For example, if an employee has a different rate of pay for day and night shift work, the details of their hours on each shift will have to be set out on their payslip.
Before the Order comes into force, employers should ensure payroll processes are adjusted to collect the new information required.
How can our employment law specialists help?
For expert guidance on how the changes will affect your business, contact our employment law team on 01473 298126 or visit us at any one of our Suffolk offices in Ipswich, Felixstowe, Hadleigh, Melton or Woodbridge.