Right to itemised pay statements

From April 2019 every worker (as defined under the Employment Rights Act 1996) will have the right to receive an itemised pay statement at or before the time any wages or salary are paid to them.

Employers should be aware that a number of details will need to be included in the written statement including the gross amount of salary/wages, the amounts of any variable or any fixed deductions from the listed gross amount and the purpose for which they are made; the net amount of salary/wages payable; and, where elements of the net amount are paid in different ways, the method and amount of each separate payment. The amendment to the law also requires an itemised pay statement to contain information regarding the number of hours worked by the worker for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked.

If an employer fails to give the correct statement to a worker, that worker has an entitlement to make a reference to an employment tribunal to determine what should have been included on the statement.

These changes will not apply in relation to wages or salary paid in respect of a period of work which commences before 6 April 2019.