On 8 February 2018, a new statute was laid before Parliament: The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018.
Under the Order, which is due to come into force on 6 April 2019, employers must itemise payslips for employees’ wages which vary depending on how much time they have worked. This must include the number of hours they are paying the employee for.
The employer 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.
What Action Should Employers Take?
Before the order comes into force, employers should;
• Ensure payroll processes are adjusted to collect the new information required; and
• Amend the format of their payslips to include this new information, where appropriate.