CIPP Payroll: need to know 2018-2019

BEIS plans additional guidance for calculating holiday pay 22 October 2018

The Department for Business, Energy and Industrial Strategy (BEIS) is planning to review the existing guidance on holiday pay.

Whilst the advice on gov.uk at the moment provides guidance for individuals looking for a basic understanding of their entitlement, it is widely accepted that it is not sufficient for employers to understand their full legal obligations (or for individuals with a more technical question). The intention is to produce more detailed technical guidance, aimed at employers, which can sit alongside the existing guidance

Initial thinking is that the more detailed guidance should include:

• What to do if you don’t have 12 weeks of pay data i.e. where someone is new in the job • How to make the calculations where pay is made each calendar month, rather than on a weekly basis • What date the reference period is calculated from • How to handle holiday pay for those with irregular hours/zero hours contracts • How to deal with those working on short contracts/temporary workers • How to deal with unpaid weeks/periods of absence • What pay elements need to be included for the EU derived entitlement versus the domestic entitlement • How outstanding holiday pay is calculated for those leaving a job • How to deal with term time workers

Where possible the plan is to include case studies, particularly for tricky but quite common situations like zero hours contracts or temporary workers.

Geographical extent

CIPP comment If there are any other situations which you feel would benefit from more detailed guidance please email policy@cipp.org.uk with your suggestions.

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How do you engage with your payslip? 26 October 2018

The CIPP and Mitrefinch need your input. Help gauge the role of the payslip in your organisation and what it means to you as an employee.

The CIPP together with Mitrefinch are running a survey about how employees engage with their payslip.

From April 2019 employers will be required to include on payslips the number of hours worked by the employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked.

The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 was laid before parliament on 8 February 2018 and comes into force on 6 April 2019.

This instrument amends section 8 of the Employment Rights Act 1996 (c. 18), adding to the list of particulars which must be included in the itemised pay statement which an employee has a right to be given.

The amendment requires an itemised pay statement to also contain information regarding the number of hours worked by the employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked.

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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