Employees and workers are protected from ‘Unlawful Deduction Of Wages‘, that is when an employer makes an unfair deductions from their pay. Employers can only make a deduction from your pay in specific situations and they must follow your employment contract terms.
Who is protected from Unlawful Deduction Of Wages?
- People working under a contract for services
- Crown servants
- People working onboard a ship registered in the UK (unless you work mainly outside Great Britain (GB), are not ordinarily a resident in GB or are employed under merchant shipping laws)
Rules for making deductions from your pay
Your employer is not allowed to make deductions from your pay or wages unless:
- It is required or allowed by law, for example National Insurance, income tax or student loan repayment
- You agree in writing to a deduction
- Your contract of employment says they can
- It is a result of any statutory disciplinary proceedings
- There is a statutory payment due to a public authority
- You have not worked due to taking part in a strike or industrial action
- It is to recover an earlier overpayment of wages or expenses
- It is a result of a court order or Employment Tribunal decision
If you were overpaid by mistake, rather than making a deduction, your employer may try to recover the overpayment by applying for a court order. If you want to prevent your employer from taking back an overpayment, you should speak to Stonehewer Moss Solicitors who will be able to advise you of your position. Remember the first consultation is free and the case maybe handled on a ‘no-win, no fee’ basis.