Employment (Individuals)

Deductions from Wages

It is unlawful to make a deduction from wages unless the deduction is required or authorised by statute, there is a provision in the employee's contract, the employee has given their prior written consent to the deduction, there has been an overpayment of wages or where payments are owed to third parties - (for example, employee’s contributions to a pension scheme or trade union dues)

If an employee finds that their employer has made an unlawful deduction from their wages they can make a claim to an employment tribunal. If successful the tribunal will order the employer to pay the amount unlawfully deducted.

A claim must be brought within 3 months beginning with the date of payment of the wages from which the deduction was made. Where a complaint is brought in respect of a series of deductions the time limit begins to run from the last deduction in the series.