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Payslip Changes 2019

Payslip changes

New legislation has changed how UK employers provide payslips to their workforces. More specifically, under the new system employers have to:

  1. deliver itemised payslips to every worker on their payroll, not just those classified as ‘employees’.
  2. include the total number of hours worked where the pay varies according to the hours worked, for example under variable hours or zero hour contracts.

The intention is to increase transparency over whether employees and workers are being paid correctly, including whether they are receiving the National Living Wage/National Minimum Wage.

The previous legislation did not require payslips to be issued to contractors, freelancers, and other types of ‘non-employee’ workers.

What must a payslip show?

A payslip must include:

  • the gross amount of wages or salary to be paid
  • the net amount of wages or salary to be paid
  • the amounts of any variable deductions
  • the amounts of any fixed deductions
  • a breakdown of how the wages will be paid if more than one payment method is used (e.g. cash and cheque)

Potential Consequences         

The consequences of not providing a compliant payslip remain the same, i.e. the employee (or, in future, the worker) can apply to a Tribunal, which can:

  • make a declaration of non-compliance, and
  • order the employer to pay compensation, but only if the employer has made a deduction which has not been properly itemised on the payslip. The compensation cannot be greater than the total amount of all unnotified deductions in the 13 weeks before the Tribunal application.


Karl Thomas, Partner and Head of Employment and Dispute Resolution at Loosemores commented:

“Employers must review their business and payroll data processes and to check compliance with this new law – amend their processes and configure their payroll operation, to ensure they comply to avoid any potential consequences.”


If you have any queries relating to the payslip changes, please contact Karl Thomas to discuss:

Telephone: 029 2022 4433


Loosemores HR gives you access to specialist employment law solicitors and experienced HR consultants. You get the advice you need, when you need it, with the benefit of knowing exactly what the cost will be in advance. Karl and the team can help ensure that your business complies with these obligations, helping to avoid any possible implications.

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