Jane Hannon: Employers must be aware of new payslip requirements


With the ever-increasing focus on Brexit, employers could be forgiven for losing track of some important domestic reforms to employment law, quickly looming on the horizon. One of these, a requirement to provide payslips to workers and not just employees, comes into force on 6 April 2019 and applies to any period of work commenced after that date.

With the implementation date fast approaching, employers need to make sure they are aware of their new obligations and have steps in place to manage the inevitable administration.

First and foremost, the impact of this reform is that employers will need to identify all the individuals who will now be entitled to a payslip. In many cases, this may not be a straightforward exercise; employers will need to seek advice if they are unsure.

This is not the only change. Importantly, employers must also, for the first time, state on payslips the number of hours worked when pay varies as a result. Employers with only salaried employees or workers, where pay is fixed and does not vary with the amount of time worked, do not have any additional obligations in this regard.

However, many employers will engage employees and workers on an hourly paid basis. Employers that engage individuals on a variety of different hourly paid arrangements may find these new obligations administratively difficult to comply with, and they will have to put in place the relevant processes and systems to manage.

The Department for Business, Energy and Industrial Strategy (BEIS) has published guidance to assist employers with these obligations.

An individual who has not received a payslip, or believes that their payslip lacks the required information, can bring a claim before the employment tribunal. If successful, the employment tribunal will make a declaration to that effect, which may also be published on its website.

Jane Hannon is an employment partner at DLA Piper