Your employer may lawfully make the following pay deductions from your salary:

  • Required deductions such as income tax or national insurance deductions
  • Deductions which are written in your contract of employment and agreed by both parties, such as pension and healthcare payments
  • Deductions that are consented to by you, for example the repayment of a student loan.

Your employer is not permitted to make salary deductions from your wage that are not authorised and this applies to both employees and some self employed workers. Unauthorised deductions include:

  • Late payment
  • No payment
  • Irregular payments
  • Not paying the agreed sum
  • Failing to pay holiday pay or statutory sick pay etc
  • Not including Working Tax Credit.
  • Failure to pay an agreed bonus or commission.

If your employer does make unauthorised wage deductions such as the ones listed above, you should initially take this up with your manager or HR department. If the matter doesn't get resolved, you may be able to make a claim to the Tribunal as long as it is submitted within 3 months minus one day of any pay deductions made.

For further information on this and any other employment issue
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