Payslip Requirements (and changes in April 2019)

Payslips – Employer Obligations at the moment:
Employees are entitled to an itemised payslip, on or before payday. Employers can choose whether they provide printed or electronic (online) payslips.

The payslip must show:

• the employees earnings before and after any deductions (Gross and Net),
• the amount of any deductions that may change each time they are paid, e.g. tax and National Insurance.

Employers must also explain any deductions that are fixed in their amount, eg repayment of a season ticket loan. You can choose to do this either on a payslip, or in a separate written statement, which must be sent out before the first payslip.

The consequences when Employers do not provide itemised payslips are:

• An Employee can go to Employment Tribunal which can make a declaration of non-compliance
• The Tribunal can order the Employer to pay compensation if the employer has made a deduction which has not been properly itemised on the payslip.

New Obligations from 6th April 2019:

• Payslips must be itemised to show the number of hours paid for, where the worker is paid an hourly rate (at the moment only the total net and gross amount of pay and any deductions, have to be shown).
• And the right to receive a payslip will be extended to all ‘workers’ as well as employees.
• Agency Workers will need to receive a breakdown of who pays them and any costs or charges that are deducted from their wages.

(These changes are made under the Employers Rights Act (Itemised Pay Statement)(Amendment) Order 2018)