This content is locked!

To access this resource log in or Subscribe to Core.

Get instant access to 3 free resources of your choice. No credit card required.

Sign up now for free access

Unauthorised deductions

Part II of the Employment Rights Act 1996 governs unauthorised deductions from wages and has evolved (as a result of case law) to include complete non-payment of wages or salary. 

Key points

  • Unlawful deductions from wages provisions cover 'workers', including employees and apprentices. Also included are people working under a contract and providing work or services personally to someone who is not a customer or client of the worker's profession or business. The provisions do not cover the genuinely self-employed.
  • Lawful deductions include income tax and NICs, any deductions authorised by the worker's contract and those deductions agreed in writing by the worker before the deductions are made.
  • Workers in the retail sector have additional protection against unlawful deductions and special rules apply to any deductions made in relation to 'cash shortages or stock deficiencies'.
  • Complaints regarding unlawful deductions from wages must normally be made to an employment tribunal within three months of the deduction.