Unlawful Deduction of Wages

We provide expert advice and representation for cases involving unlawful deductions of wages. Unlawful deductions occurs when an employer takes money from an employee’s wages without legal justification, such as unauthorised deduction for breakages or cash shortages.

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Employment Rights Acts

The Employment Rights Act 1996 (ERA 1996) covers the protection for workers against unauthorised deductions (commonly known as “unlawful deductions”) being made from their wages.

It is unlawful for an employer to make a deduction from a worker’s wages unless:

The deduction is required or authorised by statute or a provision in the worker’s contract; or
The worker has given their prior written consent to the deduction.

In addition, it is unlawful for an employer to receive a payment from one of its workers unless:

The payment is required or authorised by statute or a provision in the worker’s contract; or

The worker has given their prior written consent to the making of the payment.

Unlawful Deductions Claims

Unlawful deductions claims enables workers to claim unpaid (or underpaid) wages through an employment tribunal even while they continue to be employed. This is a different claim to a breach of contract in an employment tribunal, in that respect where they do not have the jurisdiction (power) to deal with a breach of contract claim until the employment relationship has ended.

The time limit for bringing an unlawful deductions from wages claim is 3 months less one day from the last deduction or payment where there has been a series of deductions. However, since 1 July 2015 the employment tribunal has a two year backstop period, and can only look back for this period of time. If your case goes back further than two years and it is for a substantial amount the employment tribunal jurisdiction may not be appropriate and it may be that a civil claim in the courts is the right jurisdiction for your claim. It is important that you obtain legal advice as early as possible so as to avoid, losing any rights that may be best exercised in an employment tribunal where, the costs of pursuing a claim can be a lesser risk than civil courts.

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Our Fees

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Drafting Claim and issuing

possession proceedings County Court -

Section 21 Notice - £175+VAT

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possession proceedings in County Court -

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Preparation Review Hearing

(including document bundle)

& Representation - £350+VAT

Court Fee to Issue Proceedings(subject to change)

County Court - £415

Advocacy fee in addition if required for

final hearing - £400-£950+VAT

Warrant of Possession (drafting plus Court fee

(£152-subject to change)

Transferring up proceedings to High Court

for writ of possession and control

(Optional for Judgments over £600,

must be used for judgment over £25000)

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Enforcement agency instruction) - £250+VAT

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