The rules around issuing payslips are changing on 6th April 2019. Currently only staff classified as employees need to be issued with a payslip. From 6th April 2019, all staff including casual and zero hours workers will be entitled to a payslip. Payslips for part time workers will have to specify how many hours they are being paid for.
Whats the difference between an employee and worker?
The definition of an employee and a worker can sometimes be tricky to understand. There have been a lot of cases lately that have been testing the definition including Pimlico Plumbers, Uber drivers, Deliveroo. Put simply employees have a contract of employment, they have full employment rights. Workers on the other hand have a contract to do work and to be paid for it but they are not usually under a “mutuality of obligation” . Workers do not have to accept the work offered to them and they do not have to be offered work. Workers have less rights than employees and have no protection against unfair dismissal and statutory notice periods. However a worker who does not receive an itemised payslip will from 6th April 2019 be able to take you to Employment tribunal.
What needs to be included in the payslip?
The payslip must include details of all pay received in the pay period, including any overtime and the number of hours it refers to. The payslip must also declare any cash payments made to the workers. On top of this you must show any deductions whatever they may be for e.g. uniform, accommodation, lateness, absence, salary sacrifice, transport etc
Having itemised payslips makes pay more transparent for workers. It will become more visible when employees drop below the minimum wage level. Be mindful as deductions for some items such as uniforms can take employees below the minimum wage level. Many companies got caught out on this in 2018 including Wagamamas. These companies were forced to repay the underpaid staff.
If you are still unclear as to what to declare in your payslip and who needs one please get in touch using my contact page or email email@example.com.