Unlawful Deduction of Wages

A company can only deduct amounts from your wage packet that have been agreed in your initial contract with them. This would include PAYE contributions and National Insurance, or anything you have opted into and agreed beforehand, such as repayments on a loan for study purposes. If it has not been agreed then it is illegal for them to take your money, and opens up the possibility of an unlawful deduction of wages claim.

  • Even if you owe money to your employer they still cannot take it unless they have your signed permission.
  • There is the possibility that if the firm has overpaid you, that they can then reclaim what is rightfully theirs.
  • If an employer accidentally or intentionally takes money that they should not have taken, it must be repaid promptly.
  • If an employee accidentally damages company property, money for repair cannot be deducted from wages without agreement. The company cannot also deduct money from the last wages payment if an ex-employee has taken equipment with them, for instance a laptop or business phone.

In the first instance disputes should be settled by mediation, but if this fails then, unlawful deduction of wages claims may be considered, depending on the amount in question.

Please speak to our experienced Solicitors about your case.

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