New legislation that requires all classifications of workers to be given itemised payslips will come into force in the UK as of this April.
The law will cover not just employees but also casual and zero-hours workers who currently find checking their total pay calculations notoriously difficult. But from April 2019, in those cases where rates of pay and hours are variable, employers will be required to either set out the details of how they calculated a payment, or the different payments that were made for varying types of work and/or pay, in employee payslips, whether they are in written, printed or electronic form.
According to HR Magazine, the changes mean that around 1.2 million agency workers will finally be entitled to a clear, itemised payslip detailing both what they have earned and any costs deducted - something that has previously caused confusion and led to potential underpayment for many UK workers.To ensure they are compliant, organisations will need to review their payroll processes. This means ensuring that the required basic information is already included on every payslip and amending the current format, if necessary, to incorporate the new data.
Employers should also consider how this new information will be collated and what training payroll teams will require to master the new process. Staff must also be informed of what is taking place if companies are to ensure they conform with General Data Protection Regulation obligations.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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New legislation that requires all classifications of workers to be given itemised payslips will come into force in the UK as of this April.
The law will cover not just employees but also casual and zero-hours workers who currently find checking their total pay calculations notoriously difficult. But from April 2019, in those cases where rates of pay and hours are variable, employers will be required to either set out the details of how they calculated a payment, or the different payments that were made for varying types of work and/or pay, in employee payslips, whether they are in written, printed or electronic form.
According to HR Magazine, the changes mean that around 1.2 million agency workers will finally be entitled to a clear, itemised payslip detailing both what they have earned and any costs deducted - something that has previously caused confusion and led to potential underpayment for many UK workers.To ensure they are compliant, organisations will need to review their payroll processes. This means ensuring that the required basic information is already included on every payslip and amending the current format, if necessary, to incorporate the new data.
Employers should also consider how this new information will be collated and what training payroll teams will require to master the new process. Staff must also be informed of what is taking place if companies are to ensure they conform with General Data Protection Regulation obligations.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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UK Agency Worker Regulations: Saying goodbye to the Swedish Derogation
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