New payslip legislation changes in 2019

April 25th 2019 | Posted by Phil Scott

If you work in payroll or HR, you’ll probably know that there have been some changes to payslips that have significantly increased the responsibilities of employers.

As per the Employment Rights Act 1996, which came into effect on 6th April, 2019, now more detail has to be included on the pay slips. In addition, pay slips must now also be sent to all those individuals that an employer classifies as “workers.” That is not only employees, but all the workers must be issued their pay slips as well.

We’ll help you understand these new changes…


The details mentioned below must be made a part of each and every type of pay slip from 6th April, 2019 onwards.

  • Gross wages or salary.
  • Net wages or salary.
  • In case of any and all deductions, specifying the amount deducted and what it is linked to.
  • Where salary is paid in parts, the payment method used and the amount transferred in each part.
  • If there is a variation in any part because of the time worked, then both the total hours worked and the rate of pay must be specified on the slip. This can be in the form of a single lump sum figure or separately calculated figures for each type of work and pay rate.

The idea behind this obligation to provide more information is to increase transparency around the amounts being paid to employees. By enabling the human resource to better understand what constitutes their salary, lawmakers are hoping that employers will abide by the standards on National Minimum Wage, Sick Pay, and Holiday Pay. It is also being hoped that employers who have been found wanting in the past will introduce new software or update their existing payroll systems so as to adhere to the new requirements.

The Status of “Worker”

Even if a company does not classify someone as an “employee,” they might legally fall into the “worker” category. In that case, they will be eligible to exercise their rights regarding sick leave, paid holidays, and National Minimum Wage. The modern-day gig economy has made it somewhat more difficult to determine the status of different types of employees who are part of any employer’s team.

This has often been observed in court cases presented before the Employment Tribunal. There have been lots of occurrences where individuals who were originally classified as “self-employed” have won the right be considered “workers.” The case of Uber is one of the best examples of this happening.

A lot of employers are finding it the hard way that the boundaries between a worker, an employee, and a self-employed independent contractor are getting blurred with the passage of time. If employers do not understand these laws fully, they run the risk of not being able to fulfil their obligations and leaving themselves susceptible to legal action.

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