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1 in 6 Young Workers Not Receiving Payslips

08 Apr 2019

1 in 6 Young Workers Not Receiving Payslips

New figures from the Department for Business, Energy and Industrial Strategy (BEIS) have revealed that almost 1 in 6 young workers in the UK are not receiving payslips from their employer.

The statistics emerged as new legislation went into effect at the weekend making it a legal requirement for employers to provide all of their workers with payslips.

The BEIS statistics showed that 15 per cent of young people aged 16 to 24 who are working in the UK don’t receive a payslip with their wages.

The figures also showed that almost 1 in 10 of the young workers who do receive their payslip do not understand ‘most or all’ of it.

Commenting on the BEIS figures, John Palmer, a senior guidance advisor for the Advisory, Conciliation and Arbitration Service (Acas) said: “Workers should check their payslips to ensure they are getting paid at the new National Minimum or Living Wage rates. Employers are breaking the law if they don't pay the National Minimum or Living Wage and businesses face a maximum fine of £20,000 per worker for not paying.”

“Acas has free advice for both employers and employees on the correct National Minimum and Living Wage rates and advice for workers on what they can do if they feel that they are not being paid correctly,” added Mr Palmer.

Also offering some advice was Andrew Johnson, an advice manager at the Money and Pensions Service, who said:

“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,” added Mr Johnson.

The government estimates that the new legislation introduced on 6 April 2019 will lead to around 300,000 UK workers receiving a payslip for the first ever time.

Explaining the need for the new legislation the Business Secretary, Greg Clark, said: “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,” added Mr Clark.

You can find our more about your rights and entitlements as a working student on our advice page about regulation for part time staff.

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