All payslips will now have to legally include the number of hours worked under new legislation introduced this week.
The Government said almost 300,000 workers who previously did not receive a payslip will now do so, including those on casual and zero-hour contracts.
The change comes in response to concerns that workers on variable hour contracts found it hard to calculate how long they had worked and whether they were being paid at the correct rate.
The measure comes as part of a package of changes designed to reform and upgrade workers’ rights.
Today’s changes also include the repeal of the Swedish Derogation – a legal loophole that enabled some companies to pay agency workers less than permanent staff, expected to affect around 120,000 workers, as well as a new entitlement to a day one statement of rights setting out details of a new employee’s leave allowance.
Employers should also take note of this month’s increase to the National Minimum Wage (NMW).
Commenting on the changes, Business Secretary Greg Clark said: “The UK has a labour market that it can be proud of and we are committed to continue leading the way in workers’ rights. That is why we have introduced a new right for all workers to a payslip ensuring workers are paid fairly.
“On top of this, the legislation approved by Parliament is a significant milestone in our concerted effort to deliver the largest upgrade in workers’ rights in over a generation.
“This all forms part of the Good Work Plan, which is the cornerstone of our commitment to build a labour market which rewards people for hard work, celebrates good employers and boosts productivity and earning power of workers across the UK.”
For payroll support and advice, please get in touch. We will help you stay compliant and up to date with all the latest legislation.