More than 300,000 workers will be getting a payslip for the first time this month under new rules that come into effect this week.
The rules change, part of the Government’s Good Work Plan, requires employers to include variable rates of pay and hours worked within their payroll reporting, which will enable workers to easily confirm that they are receiving the minimum wage.
The new changes are thought to primarily affect those employees on zero-hours contracts or who perform what has been described as ‘casual’ roles within a business.
According to the Department for Business, Energy and Industrial Strategy (BEIS) itemising and clearly identifying hours worked would ensure that staff could check that they are being paid at the correct rate.
The Government also believe the new rules will help to more easily identify where employers are failing to meet their national minimum wage (NMW) and national living wage (NLW) obligations, as well as their contributions to workplace pensions and holiday entitlement.
In recent years, the BEIS and HM Revenue & Customs have been taking a tougher approach to those who fail to meet the payroll rules, often imposing penalties and naming and shaming the worst offenders.
Alongside the new payslip requirements, the rules change this week will also see to the scrapping of the Swedish Derogation.
This is a legal loophole that allows some companies to pay contractors and agency staff less than permanent employees.
All employees will also be given the ability to request a statement of rights on the first day of their employment, which sets out their annual leave pay and allowance.
These changes to payslips and worker’s rights come at a time when employers are already getting to grips with changes to the NMW and NLW rates and increases in minimum workplace pension contributions.