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 minus one day 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.

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