The Employment Rights Act 1996, Itemised Pay Statement, Amendment No.2 Order 2018 is due to come into force on 6th April 2019.
What does it mean for employers? Essentially this act means any employees receiving hourly pay are entitled to see the breakdown of hours worked and hourly rate on their payslip. This should also be applied to any overtime or other additional hours/days worked. Where is was previously acceptable to show one figure under ‘Basic Pay’ employers now need to provide a breakdown of each component making up the total pay figure. There are some exclusions to this new legislation such as armed forces or merchant seamen and women.
What do we need to do as your payroll provider? From April 2019 additional information must be shown on payslips for employees whose pay varies depending on the number of hours they work. We need to ensure any hourly or daily rates of pay are clearly visible on employee payslips. Our software is extremely configurable and this is something we can implement at no extra cost and in time for April 2019 to ensure you are fully compliant.
What about variations due to unpaid leave or statutory sick pay? If employees pay does not vary by time worked there is no requirement to include hourly figures to account for variations in pay relating to unpaid leave or statutory sick pay. Such scenarios are a result of variances in pay due to a departure from normal working hours and therefore are not covered by this legislation.
What we say. We welcome this new legislation which fits into our philosophy of giving employees as much information as possible to enhance their pay and benefits experience. Giving more information to employees means less queries which means less work for our clients!
To find out more about our outsourced payroll services Why not give us a quick call on 020 3802 1534 or email firstname.lastname@example.org, you are also welcomed to visit our website: https://www.expertpayrollservices.co.uk/payroll-outsourcing/