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Employment Solicitors

Unlawful Deduction of Wages

An unlawful deduction of wages occurs when your employer has not paid you or they have paid you less than you are owed, without a lawful reason. Depending on your specific circumstances, you may be entitled to claim unlawful deductions from wages. Our employment law solicitors are here to explain your rights and help you to decide on the right course of action to recover your money.

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Can an employer make deductions from wages without your consent?

No, your employer cannot make deductions from your wages and must have your written consent, unless it is a lawful deduction as follows: 

  • Your employment contract allows the deduction. 
  • You have been overpaid by mistake. 
  • You have taken part in a strike or industrial action. 
  • It is a legal requirement. For example, income tax, National Insurance, student loan repayment or a court order. 

 Your employer should inform you if they are going to make a deduction from your pay that you may not expect. The Employment Rights Act 1996 protects you from unlawful deductions from wages. 

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What can you do about unlawful deductions from wages?

To address unlawful wage deductions, the first step is to discuss the issue with your employer and try to resolve the matter with them informally. If that does not work, raise the issue formally, in writing, through your employer’s grievance procedure. 

If you do not achieve a satisfactory outcome, register your claim for unlawful deduction of wages with ACAS (Advisory, Conciliation and Arbitration Service). It is important to act as quickly as possible because you have just six months less one day of the unlawful deduction to register with ACAS. 

Where there has been a series of underpayments, the time limit begins from the date the last deduction was made. 

 When ACAS cannot settle your claim with your employer, your case can be referred to an employment tribunal where an employment judge will decide the outcome. 

Legal advice about unlawful deductions

Our employment law solicitors have years of experience in helping employees to make claims for unlawful deduction of wages. We understand that underpayment or non-payment of wages can have severe consequences for employees, and you have the right to be paid correctly.

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Our team of specialist lawyers are experts in their field. Be confident in their advice and decisions to help get the right outcome for you. Contact us today to see how we can help

Unlawful Deduction of Wages FAQs

Yes, it is illegal for your employer to pay you late in the UK. If your employer fails to pay you on the dates agreed in your employment contract, they are in breach of contract, and it can be considered an unlawful deduction of wages. 

 Not only can late payment be classified as an unlawful deduction of wages, but it could also amount to constructive dismissal if it causes you to leave your job.

Yes, you are under an obligation to pay it back if your employer has made an overpayment of wages in error. The Employment Rights Act 1996 allows an employer to make deductions from your wages without your permission in this instance. 

 When an employee has left a company and refuses to pay back the money, their ex-employer could bring a civil claim against them. 

Yes, there is a strict time limit to claim unlawful deductions from wages; you must begin early conciliation with ACAS within three months, less one day of the deduction. If you have missed the time limit, you can refer it to the County Court instead. 

 Since underpayment of wages is considered a breach of contract, you have up to 6 years to claim through the County court.