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.


UK Top Tier Firm 2022 Lexcel Practice Management Standard Birmingham Law Firm of the Year for 2021 Resolution Collaborative Family Lawyer
The Law Society Accredited in Family Law Conveyancing Quality Scheme