Did you know that from April 2019 you need to show a breakdown of the hours worked on your workers payslips? Payroll Penny gives you a brief roundup of all you need to know;
• Anyone who’s pay is based on the hours they work must show number of hours worked on their payslip.
• Payslips can still be provided as either a hard copy or electronic version the employee can print themselves. They must be provided on or before the pay date.
Comes into force for payslips that cover a pay period that begins on 1st April 2019 or after.
What Happens if You Don’t comply?
Employers who don’t comply leave themselves at the risk of an Employment Tribunal brought about by the worker. If found to be negligent, the court could enforce the repayment of unnotified deductions made in the 13 weeks prior to the claim (even if they Employer was otherwise lawfully making the deductions).
What Does This Mean in the Real World?
Pay for salaried workers does not change due to hours worked that week / month therefore you do not need to show the number of hours worked on the payslip.
Overtime for Salaried Workers’
Overtime which is calculated by time worked does need to be shown on payslips from April 2019. If, for example, you had 15 hours at time and a half and 6 hours at double time, you can show an aggregated total (i.e. 21 hours in this case) although you may choose to show a full breakdown for full transparency. Both options will meet the new legal requirements.
When a salaried person is off sick you may choose to deduct unpaid absence from their salary. This is classed as change in normal working and pay arrangements rather than a change due to time worked so surprisingly you don’t need to provide a breakdown in hours.
Workers Paid on Day Rates
Workers paid on day rates are often paid a defined day rate regardless of hours worked. As the pay for these workers changes depending on the days (i.e. time) they work you do need a break down of the hours worked on the payslip. Technically you should be recording this for National Minimum Wage Checks and health and safety checks, but this information will now need to lead through to payroll.
Workers Paid by the Hour
You guessed it – these workers will need to have a breakdown of the hours worked on their payslip.
Term Time Workers’
Employees and workers paid on equal monthly instalments will not need the number of hours shown on their payslip. But if they do any work that is paid by the hour a breakdown for this work will need to be shown.
Payroll Penny’s Top Tips;
• Salaried payments do not need a breakdown of hours.
• Hourly paid elements can be aggregated and only a total of hours worked shown on the payslip. You may choose to break down hours per pay component.
• Unpaid absence for salaried works does not have to be show in hours.
• You need to clearly show which pay period the work is for. Be careful if you pay overtime a month in lieu or if you are processing back dated payments.
If you are worried about these and other changes coming into force in April 2019 you should sign up for our payroll health check audit.