April 2019: New Payslip Legislation

The new tax year always brings changes with it and one of the things which have come into force is the new payslip legislation ...

Employers must provide a payslip to every worker which clearly shows how their pay has changed based on the hours they have worked. This is a statutory right for everyone now, not just people considered employees of your business.

"Apart from the traditional 'employee' and 'self-employed' categories, 'worker' is now included!"

This new definition has been included in the Employment Rights Act 1996 section 230(3) and is defined as someone who, "has entered into work under a contract of employment or any other contract, whether express or implied and whether oral or in writing, whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not by virtue of the contract that of a client or custom of any profession or business undertaking carried on by the individual."

Workers who now need to receive a payslip include:

Casual
Agency
Freelance
Seasonal
Zero-hours

And everyone in between!

The legislation comes into force for any pay period which begins on or after the 6th April. Payslips can be provided in a physical or electronic format that can be printed out.

Any worker where the pay varies by the number of hours worked now must have a payslip that shows those hours. Those who work a fixed number of hours a month (usually classed as 'employees') don't need to show that on their payslip.

One last thing to remember: For a salaried person who receives a fixed amount for a fixed number of hours each month, the payslip doesn't need to include the hours worked, but if they do any sort of overtime then that part needs to show the hours. Be sure to include them.

If you'd like to find out more about this new payslip legislation then do give me a call on 01908 774320 or click here to ping me an email and let's see how I can help you.

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More about Roger Eddowes ...

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

April 2019: New Payslip Legislation

Showing the hours for workers ...