The new tax year heralds many changes, but one that may have passed employers by is a ruling affecting employees’ payslips.
On April 6 a change was introduced requiring employers to set out variable rates of pay and hours worked, so that workers can more easily check that they are receiving the minimum wage.
The rules also means that some 300,000 workers will receive payslips for the first time, in particular those working with casual or zero-hours contracts.
The Department for Business, Energy and Industrial Strategy said itemising the number of hours worked would make it easier for employees to see if they were being paid in full and at the correct rate.
It is also hoped it will make it easier to identify if employers are meeting their obligations under the national minimum wage and national living wage and that holiday entitlements are correctly applied. The national minimum wage and the national living wage increased in April.
About 120,000 agency workers will also benefit from scrapping the Swedish Derogation, a model of employment where an agency hires a worker directly, rather than being the middleman between a worker and a client company. It was controversial, because it avoided some of the rules of the Agency Workers Regulations (AWR) 2010.
Employees will also gain a new entitlement to a ‘day one statement of rights’ setting out their leave allowance and pay.
The payslip changes are part of the government’s Good Work Plan, announced in December, in response to the independent Taylor review of modern working practices.
If you are an employer feeling confused by these changes, or uncertain about your obligations, please get in touch with the team here at Optimum Professional Services. We can help with business planning, payroll, bookkeeping and range of accountancy services for your organisation.
