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Hours on Payslips – Changes on the horizon for April 2019

Posted: July 16, 2018

From April 2019 employers will be required to include on payslips the number of hours worked by the employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked.

The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 was laid before parliament on 8 February 2018 and comes into force on 6 April 2019.

This instrument amends section 8 of the Employment Rights Act 1996 (c. 18), adding to the list of particulars which must be included in the itemised pay statement which an employee has a right to be given.

The amendment requires an itemised pay statement to also contain information regarding the number of hours worked by the employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked. The Amendment states:

“…where the amount of wages or salary varies by reference to time worked, the total number of hours worked in respect of the variable amount of wages or salary either as
(i) a single aggregate figure, or
(ii) separate figures for different types of work or different rates of pay.”

The amendments made by this Order do not apply in relation to wages or salary paid in respect of a period of work which commences before this Order comes into force.

CIPP comment:

The CIPP policy and research team, together with members that span all specialisms within payroll, have been working with BEIS on this proposal throughout 2017. As part of that work and on behalf of BEIS we have published two surveys to members and the wider payroll profession, as we believed that it was vital that BEIS were in full possession of all the facts, views and experiences when discussing the issue with members and in advance of producing legislative change.

The results showed that a slight majority of respondents already provided this information on their payslips, however a significant number did not, nor were they sure whether their software would enable them to do this.

The somewhat minimalistic wording in the order will need to be bolstered by good, clear, unambiguous guidance and we remain committed to working with BEIS to ensure its timely and accurate production ahead of April 2019, to enable software developers and employers, through their payroll professionals, to be ready to comply with this tight timescale.

The CIPP continue to support employers as they seek to comply with an obligation which will bring undoubted additional burdens for many in the payroll profession.
A roundtable will be held shortly with BEIS and if you would like to express an interest in being involved please contact us at policy@cipp.org.uk with the identifier ‘Payslip data’ in the subject line.

2018 promises to be an extremely busy year in many areas of pay and reward and we thank members in advance for their constructive commitment to dealing with this change.