Unlawful Deductions from wages

Unlawful deductions happen when your employer reduces your wages illegally or does not pay you at all. Your employer is only allowed to make deductions from your wages in certain limited circumstances: where the deduction is required or authorised by law or by a clause in your employment contract, or if you have given prior written consent to the deduction.  Therefore, deductions for income tax, student loan repayments or where you have agreed to them, are permitted.

If your employer fails to pay you the agreed amount of wages, which includes sums such as commission and holiday pay, this will be an unlawful deduction. The law does not permit your employer to make deductions from your future wages, such as to cover damage by you to work property, without your consent.

The rules on unlawful deductions do not usually extend to overpayments of your wages, unless you were not aware that you were overpaid and repaying your employer will cause you hardship.

If you think your employer has made an unlawful deduction from your wages, we can assist you in raising a grievance and advise you making a claim at the Employment Tribunal.