Freelancers receive first payslip to aid in pay transparency
Over a quarter (27%) of UK workers wouldn’t realise if they were paid incorrectly. This is according to new research by ADP, a leading global technology company providing human capital management (HCM) solutions, which revealed that over a quarter (27%) of UK workers wouldn’t realise if they were paid incorrectly and that one in ten workers (12%) don’t even understand their payslip.
The ADP Workforce View research surveyed over 10,000 employees throughout Europe, to investigate how employees feel about current issues in the workplace and the future of work. Itemised Payslips, new legislation that came into force on 6th April 2019, has given contractors, freelancers, and zero-hour workers the right to receive a detailed payslip from their employer for the first time regardless of their employment status.
The Office of National Statistics reports that over 4.8 million workers in the UK are self-employed (15% of the UK population), with many of those likely to be freelancers. Until now, whether a freelancer received a payslip or not was at the behest of their contractor, making it harder to track whether they have been paid correctly. This new legislation places responsibility on employers to ensure they are paying their contracted workers fairly, and are held accountable if they are not.
Itemised payslips will enable freelancers to easily track the hours they have been paid for and provide pay transparency for both employers and contractors. The dynamics of the workforce are changing and as the popularity of freelancing increases it is vital that contracted workers are given the same rights as salaried workers. The British government introduced the Itemised Payslips legislation to increase transparency in the workplace and to ensure workers are paid fairly and accurately in all industries across the UK.
The legislative reforms are a result of the Taylor Review of Modern Working Practices which called for greater clarity over the hours of work UK employees were being paid for.
Speaking about The Workforce View research, Jeff Phipps, Managing Director at ADP says:
“The introduction of Itemised Payslips legislation is fantastic news and a step in the right direction. Good employers will always ensure that they are clear and honest with their employees about the hours they work and their pay. With the legislation coming into force, organisations now have the chance to be completely transparent with their workers – something that will reduce the confusion freelancers often face when dealing with pay. With the Itemised Payslip legislation, all types of workers can now have an open dialogue with their employers about their pay. Articulating wages in a simple and itemised way will help build trust amongst businesses and their employees, while boosting employee engagement and productivity.” Concludes Phipps.