Further to the Matthew Taylor review of Employment Practices in the Modern Economy, which identified the need for greater clarification and increased protections for workers, it has been confirmed that two key changes to the Employment Rights Act 1996 will be in effect from 6th April 2019.
Pay that varies according to hours worked
Employers must now include additional information on payslips for those whose pay varies according to the hours worked, for example under variable hours or zero hours contracts. Where this is the case, the total amount of hours subject to variable pay must be detailed.
Payslips must be issued to ‘workers’
Up until now, only employees have had the statutory right to receive a pay statement under the Employment Rights Act. No such entitlement existed for those with a ‘worker’ status. Going forwards and with effect from the 6th April 2019, payslips must now be provided to all workers, not just those who have ’employee’ status. The right will apply to pay periods which begin on or after this date.
For example, where a worker has a fixed salary each month, and works variable overtime with additional pay at an hourly rate, only the hours of overtime need to be shown.
For more information, view the government guidance on payslips here.
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