Government asks CIPD for HR views on payslips transparency

The Department for Business, Energy and Industrial Strategy has asked the CIPD to seek input from employers on policy proposals regarding the information on employee payslips

The Department for Business, Energy and Industrial Strategy (BEIS) has asked the CIPD’s Public Policy team to provide input on policy proposals regarding the information shown on employees’ payslips. The team is in turn looking to CIPD members and HR professionals to help inform that input.

The department is reviewing whether it should require employers to include hours and pay for National Minimum Wage purposes on a payslip, as defined by the National Minimum Wage Act. According to the definition in the Act, certain hours (such as hours worked for holiday pay, or rest breaks for hourly-paid workers) and certain pay amounts (such as pay for premium pay uplift, holiday pay or pay for sick leave or maternity leave), would be excluded from hours or pay worked for National Minimum Wage purposes respectively.

The payslips proposal is based on the Low Pay Commission’s recommendation in its Spring 2016 report that employers should include in their hourly-paid staff’s payslips the hours each worker is being paid for. The idea behind the Low Pay Commission’s recommendation is to increase transparency and information provided to workers about how their pay is calculated. BEIS officials are very interested in developing this proposal, and CIPD members’ responses will help to identify the best way to do so, and to obtain a better estimate of its business impacts and benefits. The proposal will be implemented across all sectors.

We are therefore inviting CIPD members to complete the payslip survey by 22 September. 

We would like to hear from organisations that pay employees on hourly rates.

The Public Policy team is very grateful for those who can take the time to feed into this survey and help inform the CIPD’s engagement with government to champion better work and working lives.

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