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(Solution) CIPD AC 4.1: Major statutory rights workers have concerning pay

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The statutory rights to employees in areas of pay has been improved to include 1 day in line with the 2020 Act after commencing their employment. The considerations include payment above the national minimum wage and an itemised payslip from the first day. The different legislations such as Equal Pay Act 1970, Equality Act 1970 have all been repealed with Equality Act 2010 consolidating all the legislations. The payslip should involve Basic salary, Dearness Allowance, Housing rent allowances, Professional taxes, special allowances, leave travel allowances, medical allowances, conveyance allowances, tax deducted at source and EPFs (Employee’s provident funds). Legislation.Go.UK (2021a) which identify the National Minimum Wage 1998 which note the minimum pay per hour majority of workers of under 23 years are entitled to by law. Also, the National Living Wage 2022 (GOV.UK, 2021b) which identify the minimum wage rates as increasing on 1stApril where the pay per hour of employees of age 23 years is set by law.For instance, in April 2022, the minimum wage was set to include £4.81 which is a 4.1% increase for 16-17 year olds, £6.83 representing 4.1% increase for 18-20 years old and £9.18 representing 9.8% increase for employees aged 21-22 years.

Right of itemized pay slip starting from their first day– In the UK, employees should be given a payslip to employees from the first day of their employment. This is considerable for all employment contracts except casual ones. According to Section 8 of the Employment Rights Act 1996, at the start of employment, employers have to give payment of wages or salary as the itemized pay statement (payslip) (Legislation.gov.uk, 1996).

 

In UK, the payslip legislation is as addressed by the Payment of Wages Act 1991. This law was further amended in February 2018 to be incorporated in the Employment Rights Act 1996 (itemised pay statement (amendment). In this amendment, it was stated that employers are required to offer insights on the amount of wages or salary varying by referencing on time worked, the total number of hours worked in respect of variable amount of wages or salary as a single aggregate figure or a separate figures for different types of work or different rates of pay. As evidenced in ACAS (2022), the employees leverage on the right to a payslip and entail what need to be included in the payslip. More critically, the payslip is a written statement from the employer evidencing what is earned before taxation and other deductions.

 Statutory maternity pay (SMP), Statutory Adoption Pay (SAP), Statutory Paternity Pay (SSP), Statutory shared parental pay (ShPP), Statutory Parental Bereavement Pay (SSBP) and the Statutory Sick Pay (SSP)- As evidenced in Gov.UK (2013), these are reviewed every April of a year.  As evidenced in April 2022 release, these would be increased from £151.97 to £156.66 or 90% of the employees every week earnings when the amount is less than a statutory rate. Further, for the MA, this would increase from £151.97 to £156.66.

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