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New Payslip Obligations


In our experience with dealing with HMRC investigations into breaches of National Minimum Wage, employers very often do not record the number of hours each employee works in a pay period. This lands them in hot water when HMRC come to investigate as there is minimal evidence to support that the employee or worker has been paid correctly and in accordance with the National Minimum Wage.

As a result of a recent amendment to the Employment Rights Act 1996, employers will be obliged to set out the number of working hours worked on an employee’s payslip, where wages vary according to time worked.

The number of hours worked can be expressed as an aggregate figure on the payslip or as separate figures reflecting different types of work with different rates of pay.

This new obligation should make it easier to identify whether or not National Minimum Wage is being met for each payslip.

The amendment comes into force on 6 April 2019. Employers therefore have a time to prepare for the new requirement and need to ensure that they maintain accurate records of the hours worked by their staff.

If you would like to discuss any issues raised in this article, we have specific employment law expertise in advising in this area. For further advice, please contact Ellie Leatherday, member of our award winning Employment Team.

Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.


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