Under section 13 of The Employment Rights Act 1996, the only circumstances in which salary/wages deductions are permitted in law are where:-
- They are provided for in the contract of employment
- The employee agrees to the deduction in writing
- They are required by statute (e.g. tax & national insurance)
- To recover previous salary overpayments
- The employee has participated in strike action
- In consequence of disciplinary proceedings where those holding the proceedings have the power to order deductions under statute
- To discharge a court order/tribunal judgement where written consent is provided by the employee
- In retail work, where a cash shortage or stock deficiency comes to light within 12 months of it arising (and the first deduction is made within that 12 months), it is permissible to deduct up to 10% of the employees gross salary so long as it is not the employee’s final salary.
- To pay third party’s specified amounts where written consent has been provided by the employee.
Should an employee have sustained an illegal salary/wages deduction, then they are entitled to bring a claim to tribunal within 3 months of the last deduction.
Unlawful Deductions From Wages: What To Do If You Have A Claim
Should you require advice on unlawful deductions from wages, then please do not hesitate to contact us. We can be contacted either by telephoning us on 0333 3010 700, or by completing the questionnaire on the right hand side of this page.
As a specialist employment law firm, you can rely upon us to provide you with quality advice from a leading employment law solicitor within the profession.
Please note that we offer a free initial consultation.
Should you have been offered a Settlement Agreement (which used to be known as Compromise Agreements) which you require independent advice on, then please call one of our employment law solicitors immediately on 0333 3010 700, or complete the questionnaire on the right hand side of this page. We will then arrange an appointment with you to go through the Settlement Agreement.