Currently, the regulations regarding payslips (found in section 8 Employment Rights Act 1996) require employers to provide their employees with a paper form or electronic itemised payslip.
The payslip should include:
- An employee’s gross pay
- An employee’s net pay
- Any deductions that have been made (e.g. tax and national insurance)
There will be two key changes from 6 April 2019:
- Employers will be required to provide payslips to all workers and not just employees
- Where an employee’s rate of pay correlates to the hours they have worked, their payslip must clearly outline the number of hours for which they are being paid.
The importance of complying with these changes must be emphasised. Employers must take the necessary steps to ensure that they are ready to provide the correct information on payslips from 6 April 2019, if they have not already done so.
Failure to comply with the new regulations could result in an employee bringing a claim against their employer before an Employment Tribunal. If the employee succeeds in their claim, the tribunal will be required to make a declaration to this effect, which ultimately can be published on their website. Where the employee has not been notified of their deductions, the tribunal can also order the employer to repay all such deductions made within the thirteen weeks prior to the claim, regardless of whether the deductions were lawful or not.