Unlawful Deduction of Wages Claim

Unlawful Deduction of Wages

If your employer has made unlawful deductions from your wages, you may be able to make a claim to recover the unpaid amount. In the UK, the Employment Rights Act 1996 protects workers from unauthorized wage deductions. Here’s a guide to understanding your rights and how to make a claim:

What Counts as an Unlawful Deduction?

Your employer can only deduct money from your wages if:

1. It’s required by law (e.g., tax or National Insurance).

2. It’s allowed under your employment contract (and you’ve agreed to it in writing).

3. You’ve previously agreed in writing to the deduction (e.g., for a salary advance).

Examples of unlawful deductions:

• Deducting pay for lateness without a contractual clause.

• Taking money for till shortages or breakages without your written agreement.

• Failing to pay you for all hours worked (including overtime, if contractually required).

• Withholding holiday pay, sick pay, or statutory payments (e.g., maternity pay).

Steps to Resolve Unlawful Deductions

1. Check Your Employment Contract and Payslips

• Review your contract to see if the deduction is allowed.

• Compare your payslips to ensure you’ve been paid correctly.

2. Raise the Issue with Your Employer

• Speak to your manager, HR, or payroll department.

• Explain the issue and provide evidence (e.g., payslips, hours worked).

• Request the unpaid amount in writing.

3. Use Your Employer’s Grievance Procedure

• If your employer doesn’t resolve the issue, submit a formal grievance.

• Follow your workplace’s grievance policy (usually found in your contract or employee handbook).

4. Contact Acas for Early Conciliation

• If the issue remains unresolved, contact Acas (Advisory, Conciliation and Arbitration Service).

• Acas will offer Early Conciliation to try to resolve the dispute without going to court.

5. Make a Claim to an Employment Tribunal

• If Early Conciliation fails, you can file a claim with the Employment Tribunal.

• Time limit: You must submit your claim within 3 months less one day from the date of the last deduction.

How to Make a Claim to the Employment Tribunal

1. Complete the ET1 Form.

2. Fill out the ET1 form online or download it.

3. Use our Unlawful Deduction of Wages Claim Template to attach to the ET1.

4. Submit the Form

5. Attend the Hearing.

What You Can Claim

If your claim is successful, the tribunal can order your employer to:

• Repay the unlawfully deducted wages.

• Pay compensation for any financial loss caused by the deduction.

Evidence to Support Your Claim

Gather the following evidence:

• Employment contract: To show the terms of your pay.

• Payslips: To highlight discrepancies.

• Timesheets or records of hours worked: To prove unpaid hours or overtime.

• Communication with your employer: Emails or letters discussing the issue.

Where to Get Help

• Acas Helpline: 0300 123 1100 (free advice on wage deductions and employment rights).

• Citizens Advice: Visit Citizens Advice for guidance.

• Trade Union: If you’re a union member, contact your union representative for support.

• Employment Lawyer: Seek legal advice from one of our advisors if your claim is complex.

Key Points to Remember

• Your employer cannot deduct wages without your written consent or a contractual clause.

• Act quickly, as there are strict time limits for making a claim.

• Keep records of your pay, hours worked, and communications with your employer.

By following these steps, you can take action to recover unlawfully deducted wages and protect your rights as an employee.

The Employment Rights Act 1996 (ERA 1996) protects employees and workers against unlawful wage deductions, including late payments due under their contract. Use our unlawful deduction of wages claim template to start a claim in the Employment Tribunal and recover lost payments from your employer. If you need help to finalise one of our free Particulars of Claim Templates we can coach you or check it for you.