Guide to unpaid and unlawful deduction of wages in the UK

In the UK, workers are legally entitled to receive their full wages for the work they perform, and this should be laid out in their work contract.

However, issues can arise when wages go unpaid or are unlawfully deducted – and this can cause serious financial issues for employees.

In this article, we look at what rights employees have and what you should do to protect your income.

By understanding your rights and knowing how to address these problems, you can take steps to ensure you receive the full wages you are entitled to. If informal discussions with your employer do not resolve the issue, don’t hesitate to seek legal advice from our employment solicitors.

Unpaid wages explained

Unpaid wages refer to situations where an employer fails to pay you for work you have completed. This can, understandably, cause frustrations for employees, as well as financial issues. Unpaid wages can include:

• Missed payments – Entire wages not being paid for a pay period.
• Partial payments – Receiving less than the agreed amount without justification.
• Withheld bonuses or overtime – Not receiving bonuses or overtime pay you are entitled to under your contract.

Common causes of unpaid wages

• Administrative errors: Mistakes in payroll processing.
• Employer financial problems: An employer may delay or withhold payment due to cash flow issues.
• Disputes over work performed: Disagreements between employer and employee over work quality or hours worked.

Later in this article, we look at what you should do if you have not been paid by your employer.

Unlawful deduction of wages explained

Unlawful deduction of wages occurs when an employer takes money from your pay without legal grounds or your explicit consent.

Legal grounds for wage deductions

In some cases, employers are entitled to deduct from your wages in the following scenarios:

1. Statutory Deductions: Deductions required by law, such as income tax and National Insurance contributions.
2. Contractual Deductions: Deductions allowed by your employment contract, provided you have been informed in writing eg. pension schemes
3. Written Agreement: Deductions that you have agreed to in writing.
4. Court Orders: Deductions made to comply with court orders, such as child maintenance payments.

Examples of unlawful deductions

In some cases, employers deduct from an employee’s wages unlawfully, or without consent.

• Deductions for damages or losses caused by an employee without a contractual basis or written agreement.
• Withholding wages as a penalty without the employee’s consent.
• Deducting training costs when an employee leaves, without prior agreement.

Unpaid or unlawful deductions – What should I do?

If you believe you have been underpaid or unlawful deductions have been taken from your wages, follow these steps.

1. Review your pay slip: Regularly check your pay slips to ensure you have been paid correctly and that any deductions are legitimate.
2. Check your contract: Verify that any deductions align with what is stated in your employment contract.
3. Document the Issue: Keep records of any unpaid wages or deductions, including emails, pay slips, and employment contracts.
4. Speak to your employer: Discuss the issue informally with your employer or HR department. Many issues can be resolved quickly through communication, especially if a genuine mistake was made.
5. Submit a formal grievance: If informal discussions fail, follow your employer’s grievance procedure. This typically involves submitting a written complaint detailing the issue.
6. Seek External Help:

• Contact ACAS: The Advisory, Conciliation and Arbitration Service (ACAS) provides free advice on employment issues and can assist with resolving disputes.
• Get legal advice: Consult with Oakwood Solicitor’s employment lawyers for legal advice and potential next steps.

Why should I use Oakwood Solicitors Ltd?

If the issue remains unresolved, contact Oakwood Solicitors employment team who will be able to advise further on potential next steps.

Our team of experienced solicitors have many years of experience in dealing with unpaid and unlawful deduction of wages cases and will help to retrieve what you are entitled to.

You will have a dedicated advisor who will see your claim through from start to finish, assisting you in the event of any queries or issues you may have. If it is preferable to you, we are able to assign a female advisor to carry out your claim.

Your case handler will also continue to provide regular updates until the conclusion of your claim, ensuring the process is as stress-free and effortless as possible.

Further reading

Employment Terms and Conditions and Breach of Contract – Oakwood Solicitors

WHAT TO DO NEXT

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