Website of the UK government

Please note that this website has a UK government accesskeys system.

Public services all in one place

Main menu

Saturday, 22 November 2008

Employment

Employment

Non-payment, deductions and payslips

If you are an employee, you have a right to know the amount you are to be paid and how often. If your employer wants to make deductions from your pay, there are rules they must follow.

Your contract of employment

A contract of employment is a legally binding agreement between an employer and employee. The contract doesn't have to be in writing, although your employer must give you a written statement of the main terms of your employment within two months of the day you start work. This statement will include information about your pay.

What can be deducted from your pay?

Your employer is not allowed to make a deduction from your pay unless:

  • your contract says they can - and your employer has given you a written copy of the part of the contract which says so, or a written explanation of it, before making the deduction
  • it is required or authorised by law, such as income tax, national insurance or student loan repayments
  • you have agreed in writing to a deduction before the conduct takes place for which your employer proposes to make a deduction

If you were overpaid on a previous occasion then these rules do not apply. Your employer will often be allowed to recover the overpayment. You should speak to a lawyer, an Acas advisor (Labour Relations Agency in Northern Ireland) or a Citizens Advice Bureau advisor for more information about how and when you might be able to prevent your employer from taking back an overpayment.

Other situations where the rules don't apply include if you took part in industrial action or if a deduction is made under a court order. Whatever the situation, your employer must still comply with the terms of your contract.

If you haven't been paid at all, this counts as a deduction from your pay of all the pay due to you.

The right to protection from unauthorised deductions from pay covers anyone who is classed as a worker. 'Worker' has a specific legal meaning - check if you are unsure of you employment status.

Retail work

If you do retail work (for example, if you work in a shop) you have extra protection. Your employer is not allowed to take more than 10 per cent of your gross wages from your take-home pay on any individual payday to make up the shortfall from a cash or stock shortage. If this isn't enough your employer can continue to take money from your wages on subsequent paydays, but not more than 10 per cent on a single payday. If you leave the job, your employer can take the full amount owed.

You can complain to an Employment Tribunal if your employer does not follow these rules.

Should you be given a payslip?

By law, your employer must give you a written 'pay statement' - usually called a 'payslip' - when or before you are paid your wages. It must include your gross pay, take-home pay and any deductions.

Deductions that change (for example, Income Tax payments) must be individually listed each time. Fixed deductions (for example, trade union subscriptions) can be shown as one combined total provided you have been given an annual statement showing how that total breaks down. The annual statement must set out the amount of each fixed deduction and the intervals at which the amount is paid.

Additional information might be included on your pay slip, including your National Insurance Number, tax codes and hourly rate. Also, payments like overtime, tips, bonuses etc might be shown separately. However, none of this information is required to be on your payslip.

If you haven't received a payslip then you should first try following the steps set out in the article on resolving problems at work. If that doesn't help then you can apply to an Employment Tribunal (Industrial Tribunal in Northern Ireland).

When and how you should be paid

When you start work your employer should tell you:

  • the day/date on which you'll be paid - for example, each Friday, or the last working day of the month
  • the method of payment (in cash, by cheque or directly to your bank)

If you are an employee, you must be given a document which tells you how much you'll be paid, and at what intervals, within two months of starting work.

What to do if you haven't been paid in full

If you haven't received your full pay (or any pay) try these simple steps:

  • Check your payslip to see if it tells you why you haven't been fully paid
  • Check your contract to see if there is anything that allows your employer to make deductions from your pay
  • Speak to your employer to see if you can sort the problem out with them
  • If you have an employee representative (for example, a trade union official) you can ask for their help.

If this doesn't work, you have the right to go to an Employment Tribunal to get your money. You can also try and reclaim money you've lost (including the extra losses caused by you not receiving the money on time, for example, bank charges) by making a breach of contract claim.

Leaving your job

If you are forced to resign as a result of your employer refusing to pay you, you might be able to make a constructive dismissal claim.

If you leave a job and serve an agreed notice period, you're still entitled to be paid in full. This includes any additional payments, such as holiday pay, that are covered in your contract of employment.

If during the notice period you are on maternity, paternity, parental or adoption leave, off work through illness or on holiday, or you're ready and willing to work but your employer provides you with none, you may still be entitled to a minimum level of pay.

Where to get help

The Advisory, Conciliation and Arbitration Service (Acas) offers free, confidential and impartial advice on all employment rights issues. You can call the Acas helpline on 08457 47 47 47 from 8.00 am to 6.00 pm Monday to Friday.

The Labour Relations Agency (LRA) offers free, confidential and impartial advice on all employment rights issues for residents of Northern Ireland. You can contact the LRA on 028 9032 1442 from 9.00 am to 5.00 pm Monday to Friday.

Your local Citizens Advice Bureau (CAB) can provide free and impartial advice. You can find your local CAB office in the phone book or online.

If you are a member of a trade union, you will also be able to get advice and support from them.

More useful links

In this section...

Additional links

Access keys