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Payslips for Workers

In response to the recommendations made by the Taylor Review of Modern Working Practices, new laws will be coming into effect on 6th April 2019 to ensure that workers have the right to be given itemised payslips for the work that they perform.

Before this, only employees were entitled to receive itemised payslips, which may also be known as wage slips, itemised pay statements or even the good old “pay packet”.

Those protected by this new legislation will include agency workers and zero hours workers.  In particular, agency workers will need to be given itemised payslips through the agencies that have retained them, rather than the businesses that actually provide them with work.

For the avoidance of doubt, those who are genuinely self-employed, members of the armed forces, police officers, merchant sailors and those who hold a stake in the profits or earnings before tax of a fishing vessel will not be entitled to receive an itemised payslip.

Payslips need to include:-

  • The value of a worker’s pay before tax is deducted (i.e. gross pay);
  • The value of a worker’s pay after tax has been deducted (i.e. net pay);
  • Information on any variable and fixed deductions that have been made from a worker’s pay and what those deductions are specifically for:-
  1. For instance, examples of “variable deductions” may include taking into account an overpayment that was made on a previous occasion or deducting the cost of course or training fees where the worker is personally responsible for paying these, and
  2. “Fixed deductions” may include deductions for season ticket loan repayments and trade union membership fees.
  • Information on how payments will be made to the worker if more than one payment method is used, and
  • Information on variable hours that a worker has worked where this will result in them receiving a different wage.  For example, if a worker engages in paid overtime or performs different tasks at different rates of pay, then the hours worked and rates of pay will need to be set out in the payslip.

Payslips need to be set out in writing, either by hand or electronically, and be provided to the worker on or preferably before the relevant payment date.  It is also good practice to specifically itemise the deductions that are being made from a worker’s pay, rather than simply providing a total of those deductions without explaining what they are for.

Lastly, but importantly, businesses and agencies should note that employees are also workers.  Therefore, if some flexibility in hours is required from employees that will impact their pay, this will need to be reflected in their payslips as well, as described above.

This article is not a substitute for legal advice on specific facts and circumstances. It is designed as a free update on the law at the time of publishing. Knight Polson Limited trading as QualitySolicitors Knight Polson accepts no responsibility for reliance on this article and recommends that you seek independent legal advice on your specific circumstances prior to taking any steps.

If you have any questions or would like to discuss the contents of the above article, please do not hesitate to contact us on knightpolson@qualitysolicitors.com or 023 8064 4822.

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