Who doesn’t love payday? Sadly, most payslips will come with some deductions. Even though employees are protected from illegal or unauthorised deductions, there are several cases in which your employer can legally make deductions.
Deductions cannot be made from your payslip unless:
- It is part of your contract (you can read more about employment contracts here)
- It is required by law
- You agree in writing
- Your employer receives a court order
- You have not worked due to taking part in industrial action I.e a strike
When can an employer deduct your wages?
- Tax or national insurance
- Overpayment of wages (if the company accidentally overpays your wages they are allowed to recoup the overpayment even if this is their mistake)
- Buying share options in the company
- Pension contribution
- Loan repayments such as your student loan
- To pay for accommodation that your employer provides
- If you are liable for shortfalls in the till (if you work in retail or hospitality). However, they cannot deduct any more than 10% from your gross pay at a time
What if you have not been paid in full or if you think your employer has deducted your wages unlawfully?
Firstly you should speak to your employer. It may be the case that a simple mistake has been made which can easily be resolved. This is why we recommend keeping a track of your earnings so you can easily work out if you have been paid properly.
If you genuinely believe your wages have been deducted unlawfully and your employer refuses to take any action you should contact ACAS for some advice. You can also contact your trade union if you belong to one.
As a last resort, you have the right to take your employer to an employment tribunal. However, most issues should be able to be resolved without the need to take legal action.
