New Payslip Requirements

Added On: 19th February 2018

New Payslip Requirements

As you may know, HMRC are hot on the trail of companies breaching National Minimum Wage regulations. When they come in to carry out an investigation employers can find themselves with a lot of work to do to collate information on the number of hours each employee has worked in a pay period, because they don’t have a system for recording this information in an easy to access way.

This can be tricky because it means that when HMRC come to investigate, employers have limited evidence to support the fact that an employee or worker has been paid correctly and in accordance with the National Minimum Wage.

Things are about to get easier!

Following a recent amendment to the Employment Rights Act 1996, where wages vary according to time worked, employers will be obliged to set out the number hours worked in each pay period on an employee’s payslip – so for example, anyone working on a zero hours contract will have to have the number of hours worked in the pay period specified on their pay slip.

The amendment comes into force on 6 April 2019, so employers have over a year to prepare for the new requirement – but it makes sense to get things in place as soon as possible so that any questions raised by HMRC can be swiftly and easily answered.