Wage deductions advice

Pay deductions law

The employer may deduct the following from an employee's wage: -

• Tax and National Insurance Contributions
• Salary deductions ordered by the court
• Sums previously agreed with the employee
• Repayment of Student Loans

If an employer makes payroll deductions from an employee's wage in one of the following ways the employee will be able to make a claim to the Tribunal. He/she must submit the claim within 3 months of the deduction:

• The payment is late
• The employer does not make a payment
• The employer makes irregular payments
• The employer does not make a payment of the agreed sum
• The employer fails to pay holiday pay or statutory sick pay etc
• The employer has not included Working Tax Credit.
• The employer fails to pay an agreed bonus or commission

For wage deductions advice and further information on this or any other employment issue please use our enquiry form.