As of the 6th April, 2019 new legislation is to be introduced that will have a major impact on how UK employers provider payslips to both employees and ‘non-employees’.
Currently, the law requires that employees receive a payslip each time that they are paid, however, this is only a legal requirement for full-time employed staff. The current legislation does not require employers to provide a payslip to any contract workers, freelancers and other types of ‘non-employees’ working within the business.
However, this is all set to change with the Right to Recieve a Payslip legislation which is likely to have an impact on how payroll departments across the country operate.
What does the new legislation mean?
The Right to Recieve a Payslip legislation means that all employers will legally be required to provide all of their employees and ‘non-employees’ with a payslip. They will also, on each worker's payslip, have to specify where the pay varies by the amount of time worked. This provides workers with full transparency as to what pay should be receiving, ensuring businesses are acting ethically and lawfully.
Workers whose pay varies depending on the number of hours will receive information on their payslip, which details the hours they have worked and the pay they have received for this period.
For example, where a worker has a fixed salary each month and works variable over time with additional pay at an hourly rate, only the hours of overtime need to be shown. The hours can be shown either as a single total of all such hours in the pay period, or they can be broken down into separate figures for different types of work or different rates of pay.
There are some limited exclusions from the right to receive a payslip, such as for members of the armed forces.
How do I find out more?
For further information, the government has provided a detailed breakdown of exactly what is included and what businesses need to know. You can view this here - https://www.gov.uk/government/publications/payslip-policy-a-guide-to-the-2019-legislation
As a business Prestige Recruitment Specialists always operate as per guidance from the Home Office on all matters of employment and recruitment.