It may have come as a surprise to realise that until April, not all workers were entitled to a payslip.
From 6 April, all workers now have a statutory right to receive an itemised payslip, including zero hour and casual workers. Up to that date, the right only extended to employees. Employers must now be prepared to provide information on ‘time worked’ with details of the number of hours being paid on workers’ payslips. This can be given either as a single aggregated figure or separate figures for different types of work at different rates. Workers should be able to clearly see that they have been paid for the hours worked at the appropriate statutory rates where relevant.
With the new payslip rules now in force, it’s even more important for all workers to be aware of their entitlements and check that they are receiving them correctly. Many people don’t check their payslips, trusting their employers/payrollers to get it right and assuming payments and deductions are correct but information received can be wrong! For permanent employees likely affected by April’s increase to auto-enrolment contributions, there is even more reason to make sure everything is present and correct.
Encouraging employees to question anything they don’t understand, and to ask if concerned about unknown deductions, will go a long way to forming trust and loyalty. Ensuring engagement with wages flows into helping workers with informed financial decision-making, pensions planning and alleviating one of the major factors of workplace stress.
As the new rules were coming into force, however, the Department for Business, Energy and Industrial Strategy (BEIS) released a survey revealing that many don’t entirely understand all the information on their slips – only 62% were confident about everything they saw. Gaps in understanding were higher for women than men (55% of women compared to 70% of men admitted to not understanding their complete payslips) and younger workers.
April also marked the 20th anniversary of the national minimum wage (NMW), which has risen this year to £7.70 an hour for employees between 21 and 24. At the same time the national living wage saw a record 5% increase to £8.21 an hour for employees over 25. It was also reported that around 30% taking part in the survey, mistakenly believed that only permanent employees were entitled to receive it.
For more information, visit our Payroll page.
|Click here to contact Linda Kelly, Head of French Duncan's Payroll Department|