Unlawful deductions from wages

By law (Employment Rights Act 1996), your employer can only make a deduction from your wages if:

it’s required by law – for example tax
your employment contract specifically allows the deduction
they overpaid you by mistake
it’s something you agreed to in writing beforehand – for example paying a trade union subscription
you missed work because you were on strike or taking industrial action
it’s a result of a court ordering your employer to make debt payments from your wages to a third party
it’s a result of a court ordering you to make a payment to your employer – you must have agreed in writing that your employer can make the deduction
you and your employer have agreed a salary sacrifice arrangement

Deductions must be clearly stated in your payslip.

Can a deduction take your wages below the National Minimum Wage

Deductions must not take someone’s pay below the National Minimum Wage, unless the deduction is for:

tax or National Insurance
something you have done which your contract says you’re liable for, such as damage to a vehicle through reckless driving
repayment of a wage advance or loan
an overpayment made by mistake
buying shares, other securities or share options in the business
accommodation being provided by an employer – find out more about accommodation deductions on GOV.UK
something you benefits from – for example trade union subscriptions or pension contributions
voluntary training – you must have agreed in writing beforehand to pay back the costs

If you do not agree with a deduction

If you disagrees with a deduction, you should first try to raise it with your employer.

If you’ve not been able to resolve the issue with your employer, you might be able to make a claim to an employment tribunal.

For example, you might be able to make a claim for:

There are strict time limits for making a claim to an employment tribunal.

If your employer made 1 wrong deduction, you have 3 months minus 1 day from the date of the deduction to make a claim to an employment tribunal.

If several deductions were made, you have 3 months minus 1 day from the date of the most recent deduction.

You can claim up to 2 years back as long as either of the following apply:

there’s less than 3 months between deductions
the deductions are linked – for example, they might be linked if they are caused by the same error

Get more advice and support

If you need more advice about deductions, you can: