From April 2019, the new legislation requires employers to provide payslips to all workers. Employers are also required to show hours on payslips where pay varies by the amount of time worked.
Previously the right to a payslip only applied to employees. Under the new legislation this extends to all ‘workers’. Someone is classed as a ‘worker’ if:
Firstly, you need to assess your workforce and ensure that all workers (not just employees) receive a payslip.
Secondly, if any of your workers whose pay varies depending on the hours worked, then you will need to show these hours on that worker’s payslip.
Below are two examples:
Example one: A salaried worker with no variable pay
Ben is contracted to work 37 hours a week for his employer at a salary of £20,000 per year. In his role, no overtime is required and he only works his 37 hours per week.
As Ben’s pay doesn’t vary by the number of hours he’s worked, there is no requirement to show any of his hours on his payslip.
Example two: A salaried worker with additional variable pay
Alice is contracted to 40 hours per week at £30,000 per year. Alice’s basic hours are 9am – 5pm, Monday to Friday. However, at certain times of the year Alice has to work overtime, for which she is paid.
Alice’s payslip does not need to show her basic hours but must show any additional hours that she has worked as overtime.
Additional examples and more information on the changes can be found here.