Itemised Payslips for all: Upcoming changes to the Employment Rights Act 1996

From 6 April 2019, amendments to the Employment Rights Act 1996 (“ERA 1996”) will take effect that ought to not only increase transparency in the labour market but also serve to bolster the rights of all workers. So what precisely are these changes?

Firstly, the right to itemised pay statements and the associated enforcement provisions found in the ERA 1996 will extend to all workers including casual and zero-hours workers. This means that every worker (and not just employees) will have the right to be given a written itemised payslip at or before the time at which any payment of wages or salary is made to them.

In addition, changes will be introduced to the content of the itemised payslip itself. Presently, Section 8 of the ERA 1996 requires a written itemised pay statement to contain the following details:

  1. The gross amount of the wages or salary;
  2. The amounts of any variable, and any fixed, deductions from that gross amount and the purposes for which they are made;
  3. The net amount of wages or salary payable; and
  4. Where different parts of the net amount are paid in different ways, the amount and method of payment of each part-payment.

The amendments will require payslips to further state the total number of hours that are being paid where wages or salary vary according to the time worked. This information can be illustrated either by a single aggregate number of hours or separate figures for different types of work or rates of pay. This ought to prove particularly useful for those individuals that work variable hours.

The above changes will not apply in relation to wages or salary paid in respect of a period of work which commences before 6 April 2019. Thereafter, however, if an employer either fails to give a worker an itemised statement or gives a worker a statement that does not comply with the above requirements, the worker will be entitled to make a reference to an employment tribunal to determine what particulars ought to have been included or referred to in the statement.

This expansion of the current law reflects the Government’s recent response to the Taylor Review and is a significant step forward in helping individuals understand their pay more clearly.

CONTACT CHRIS

If you would like more information or advice relating to this article or an Employment law matter, please do not hesitate to contact Chris Cook on 01727 798089.
Views & Insight
Stained glass window Employment SA Law
SA Law commuters on London Bridge
Views & Insights
UK's post-Brexit immigration policy is highly damaging for hospitality

Immigration solicitor, Gemma Jones comments in Big Hospitality about the impact of Brexit on the UK hospitality sector.

Read More
SA Law Red arrow neon light image
Views & Insights
ICO publishes passwords and encryption guidance

Partner, Chris Cook, identifies the new ICO guidance on passwords in online services and encryption under GDPR.

Read More
Stained glass window Employment SA Law
Views & Insights
Employment tribunal fees back on the agenda

Partner, Keely Rushmore comments in Personnel Today following the recent discussion of tribunal fees.

Read More
SA Law View and Insights books
Views & Insights
SA Law is delighted to announce success in this year's Directories rankings

We are pleased to share that we have held our position in all our main practice areas in both Chambers & Partners and Legal 500.

Read More
Join our team puzzle piece SA Law
Views & Insights
Mental health & the legal profession

Kelly Pike comments in The Times following international mental health day. Junior lawyers suffering mental health problems may struggle to ask for support.

Read More
Stained glass window Employment SA Law
Views & Insights
Ethnicity pay gap will 'lead to flood of tribunal claims'

SA Law Employment solicitor Nikita Sonecha comments in The Times about the proposed plans announced for an ethnicity pay gap report for employers with…

Read More
Stained glass window Employment SA Law
Views & Insights
Businesses may be required to report ethnicity pay gap

Nikita Sonecha comments in People Management on the plans announced that ethnicity pay gap reports may become mandatory under new plans by the Prime Minister.…

Read More
Stained glass window Employment SA Law
Views & Insights
GDPR and SARs; staying compliant and protected

Partner and Head of Employment & Data Protection, Chris Cook writes in Education Executive about the GDPR and SARs.

Read More
Stained glass window Employment SA Law
Views & Insights
Changes to National Minimum Wage Enforcement under TUPE – Where does liability now lie?

Employment Law Update

Read More
SA Law Employment Laptop

© SA LAW 2018

Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them alone. You are recommended to obtain specific advice in respect of individual cases.