The Department for Business, Energy and Industrial Strategy (BEIS) says payslips will have to include number of hours worked making it easier for workers to check they are being paid the correct amount.
This will benefit workers on casual and zero-hours contracts as it will allow them to check they are being paid the legal minimum.
Up to 120,000 agency workers will also benefit from the scrapping of the 'Swedish Derogation' – the legal loophole which enables some firms to pay agency workers less than permanent staff.
Around 1.5 million people will also receive a day one statement of rights setting out leave entitlements and pay.
Business Secretary Greg Clark says: “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 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.”
The changes form part of the government’s Good Work Plan, the government’s response to the independent Taylor Review of modern working practices.
To promote the ongoing National Minimum Wage uprating campaign and Industrial Strategy, BEIS commissioned a poll on worker awareness around payslips and confidence in the workplace.
Almost one in five (15%) young workers (16-24) do not receive a payslip, while just one in ten (10%) older workers receive one, according to research from BEIS, which interviewed 2,001 workers aged between 16 and 64.
Employment lawyer Gillian Howard says: “Workers may not check their payslip regularly because they are trusting their employer has got their pay and deductions correct.
"This may not be the case either because payroll has the wrong information or they have misunderstood the wages and allowances.
“It is essential to check your payslips every week or month to make sure the pay from your employer is absolutely correct.
“If you think you have not been paid the amount you are entitled to, or you don’t understand the amounts paid and deductions made speak to your employer and ask for the gross and net figures and how and what deductions have been made.”
The poll also found that female respondents were on average less confident than men on approaching their employer to make sure they are getting the amount of pay they are entitled to.
More than one in ten (12%) women said they were not confident compared to just 5% of men, suggesting that women are twice as likely not to query their pay.
Over one in ten (13%) 16-24-year olds said they were not confident about approaching their employer, compared with just 6% of over 55-year olds.
Workers are urged to check their payslips regularly to ensure their employers are paying them enough.
Andrew Johnson, advice manager at the Money and Pensions Service (the new single financial guidance body from the government) says: “It’s really important that people are engaged with their money and understand their wages, so they can make informed financial decisions.
"The changes in April 2019 to the National Living Wage and National Minimum Wage are a positive step towards this. New legislation requires all employers to provide an itemised pay slip, and where your pay varies, the hours you have worked.
"This will make it easier to check your hourly rate and make sure you’re being paid the correct minimum wage for your age.
“It’s still important to check your pay slip regularly, and if you don’t understand it or think there might be a mistake, speak to someone in the payroll section of your company. You can also visit the Money Advice Service website which has a guide to help you understand your pay slip."
Article first appeared on Moneywise 13th April 2019