COMPLIANCE
Empowering financial stability: The Code of Practice for earned wage access
Zoe Pope ACIPP, assistant marketing manager, the CIPP , introduces the Code of Practice designed to provide best practice in relation to earned wage access (EWA)
E WA products, also known as financial services which allow employees to access a portion of their earned wages before their regular payday. The Code of Practice The journey towards EWA has taken a significant step forward, with seven UK providers joining forces to become the EWA Group and create an industry Code employer salary advance schemes, flexible pay or on-demand pay, are of Practice. As the professional body for payroll, we’ve endorsed this Code, as it provides EWA best practice tips for UK employers and payroll teams, to help ensure good outcomes for their employees (or consumers within the Code) at a critical time. The founding members of the EWA Group are: l The Access Group
employees. Please see here: https://ow.ly/ hk2t50PMQfv. The Group welcomes new members to join the Code’s standards to deliver good outcomes to consumers. More detail around how to become a member of the Group can be found on page nine of the Code. “As the professional body for payroll, we’ve endorsed this Code, as it provides earned wage access best practice tips for UK employers and payroll teams, to help ensure good outcomes for their employees (or consumers within The CIPP encourages all organisations contemplating the introduction of EWA to thoroughly review the Code, which is hosted on the CIPP website. Understanding what employers can and should do to ensure positive consumer outcomes for employees is vital. EWA: a global phenomenon EWA systems continue to gain recognition in the UK and are firmly established in parts the Code) at a critical time”
of Europe, where such schemes are already a legal requirement for employers, with the United States preparing to follow suit. The global movement towards EWA underscores the importance of aligning with industry standards and protecting the financial interests of employees across the UK. With more than four million UK workers opting for the ability to choose when they get paid and one in ten companies offering some form of EWA, we’re aware that such schemes are expected to grow rapidly, which is why the CIPP is welcoming the launch of the Code. Jason Davenport, the CIPP’s chief executive officer, confirmed the importance of the launch during National Payroll Week, stating: “EWA is a very hot topic in the payroll industry at the moment, so the CIPP is delighted to support the Code of Practice launch as it offers our industry best practice guidance. We encourage organisations considering the introduction of an EWA system to visit our website to understand more about the Code and how best to implement it within their payroll function.” Embrace EWA responsibly EWA isn’t just a trend; it’s an opportunity to support your employees and enhance your organisation’s reputation as a responsible and caring employer. By aligning with the Code of Practice, employers can ensure that EWA becomes a valuable tool for financial empowerment. Responsible implementation and a firm commitment to these principles are the keys to unlocking the full potential of EWA, benefiting employees and employers alike. To find out more and to download the Code, visit https://ow.ly/ESbt50PMQlP. n
l AnyDay l Ceridian l Hastee l Level Financial Technology
l Salary Finance l Wagestream.
They’re committed to upholding the principles outlined in the Code. The Code was crafted in response to a recommendation from the Financial Conduct Authority (FCA) Woolard Review, which focussed on enhancing regulation to support a healthy unsecured lending market. The Code launch is also very timely, as in September, HM Revenue and Customs announced a consultation around the real time information reporting requirements for advance payments of salary made to
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| Professional in Payroll, Pensions and Reward |
Issue 94 | October 2023
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