Businesses in the sector will be accustomed to complying with the requirement to provide an itemised payslip to employees on their payroll – either in electronic or paper format. This should include gross and net pay, as well as any deductions such as tax and national insurance.

From 6 April 2019 there are two significant changes to regulations which employers must be aware of.

Firstly, from this date payslips must be provided not only to employees, but also to workers. Hospitality and leisure businesses often rely on flexible working to cover fluctuations in demand, so will frequently use casual workers on zero hour contracts. So if you have a waitress who occasionally works shifts over a busy period, but who isn’t a regular team member, you will now have to provide them with an itemised payslip.

Secondly, where an employee’s rate of pay changes according to the hours they have worked, their payslip must clearly outline the number of hours for which they are being paid.

The penalties

It is important that employers are taking the necessary steps to ensure that they provide the correct information on payslips from 6 April 2019. Failure to comply with the new regulations may result in an employee bringing a claim against their employer before an Employment Tribunal. If the employee succeeds in their claim, the tribunal will be required to make a declaration to this effect, which ultimately can be published on their website.

Where the employee has not been notified of their deductions, the tribunal can also order the employer to repay all such deductions made within the thirteen weeks prior to the claim, regardless of whether the deductions were lawful or not.