New law ensuring all workers receive pay slips comes into effect

New regulations requiring employers to provide payslips for all workers, including those on casual and zero-hours contracts, has now come into effect. An estimated 300,000 people are expected to benefit.

From April 6, these payslips must include the number of hours worked, making it easier for workers to check they are being paid in full at the correct amount.

The government has also closed the legal loophole known as the Swedish Derogation, which enabled some companies to pay agency workers less than permanent staff. There is also a new entitlement to a day one statement of rights setting out details of a new employee’s leave allowance.

Business Secretary Greg Clark said: “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.

Parliament has also approved the first package of Good Work Plan legislation, which means:

• around 1.5 million people are to receive a day one statement of rights setting out leave entitlements and pay
• all workers will be better protected from employers who have demonstrated malice, spite or gross oversight, with the maximum additional penalty that Employment Tribunals can use quadrupling from £5,000 to £20,000
• up to 120,000 agency workers will benefit from the scrapping of the Swedish Derogation – an end to the legal loophole that enables some firms to pay agency workers less than permanent staff
• new agency workers will also benefit from a key facts page before signing up with an agency, which will provide clarity, particularly around their pay
• employees will have a stronger voice in the workplace. Employees already have a legal right to make a request to be informed and consulted about issues at work and the threshold for them to request these arrangements will be reduced from 10% to 2%.

In addition, the Government has launched a new £1 million advertising campaign to raise awareness of the National Living and Minimum Wage rates to workers and employers. The adverts are part of the Government’s ongoing ‘A Fair Workplace’ campaign, which is designed to highlight a range of workplace rights to help workers understand what they are entitled to and ensure businesses comply with the law.

Please contact us if you would like more information about the issues raised in this article or any aspect of employment law.