April is an important month for employers and us as employment lawyers - it is when we see a raise in rates and certain statutory payments. There are also some changes to the law surrounding itemised payslips.
From 1 April 2019 the following increases to the National Minimum Wage and National Living Wage will apply:
|Year||25 and Over||21 to 24||18 to 20||Under 18||Apprentice|
|April 2018 (Current Rate)||£7.83||£7.38||£5.90||£4.20||£3.70|
The following payment increases will also come into force:
- As of 6 April 2019, statutory sick pay will increase from £92.05 per week to £94.25.
- From 7 April 2019, statutory maternity pay, paternity pay, shared parental pay and adoption pay will increase from £145.18 per week to £148.68.
In addition, from 6 April 2019, new legislation will be coming into force requiring employers to provide all workers with an itemised payslip, a statutory right which currently only applies to employees.
Furthermore, for those workers and employees whose pay varies depending on the number of hours they have worked, their payslips will need to show the number of hours paid for on this basis (i.e. on the amount of time worked). Any other hours worked do not need to be shown, although it may be helpful to provide this information nevertheless. Government guidance provides the following as an example, where a worker has a fixed salary each month, and works variable overtime with additional pay at an hourly rate, only the hours of overtime need to be shown on the payslip. The hours can either be shown as a total, or they can be divided into separate figures for different types of work or different rates of pay. If a payslip does not provide the required information then a claim may be brought before an Employment Tribunal.
With the April deadline fast approaching, it provides an opportunity for employers to review their payroll processes – practically this will mean that they will not only need to ensure that payroll is able to collect and collate the information required, but that the payslip format is able to present it accurately.
If you would like more information about the changes addressed in this article or any other aspect of employment law, please contact us at 02920 345511 or firstname.lastname@example.org.