What counts as unpaid wages
A pay dispute may concern salary, hourly pay, overtime, commission, bonus, allowances, holiday pay, sick pay, family-related statutory pay, notice pay, or deductions for training, equipment, shortages or overpayments.
A deduction appearing on a payslip is not necessarily lawful.
When can deductions be made?
An employer must not make a deduction from wages unless:
- it is required or authorised by statute — PAYE, National Insurance, student loan, attachment of earnings
- it is authorised by a written term of your contract of which you were given a copy or written notice before the deduction was made
- you gave your prior written consent
The precise wording and the timing both matter. Consent given after the event does not validate an earlier deduction.
An employer can ordinarily recover a genuine accidental overpayment, but disputes commonly arise about the amount and the repayment schedule.
Common problem deductions
| Scenario | Position |
| Training cost clawback | Only enforceable under a clear, proportionate, sliding-scale contractual clause agreed in advance |
| Till shortages or stock losses in retail | Statutorily capped at 10% of gross pay in any one pay period |
| Commission withheld on resignation | Unlawful if earned before notice, unless an express contractual term says otherwise |
| Unilateral salary reduction | An unlawful deduction and a likely fundamental breach of contract |
| Deduction for uniform, tools or equipment | Unlawful if it takes your effective hourly rate below the minimum wage |
Gather your documents
Your contract; pay and bonus policies; commission scheme rules; payslips; bank statements; timesheets; rotas; holiday records; expense claims; termination documents; and all correspondence about the disputed amount.
Then prepare a clear three-column calculation: what should have been paid; what was paid; the shortfall.
Raise it in writing
State the pay period, the amount due, the amount received, the shortfall, the contractual or statutory basis, the supporting evidence, and a reasonable deadline for payment.
Do not let correspondence run on past your tribunal deadline. It is the most common way these claims are lost.
Tribunal and court claims
An Employment Tribunal can hear an unlawful deduction from wages claim. Different rules apply to a single deduction, an alleged series of deductions, and contractual claims arising on termination.
Breach of contract claims in the tribunal are subject to a monetary limit and can generally only be brought once employment has ended. Larger contractual claims can go to the County Court in England and Wales, or the Sheriff Court in Scotland, where the limitation periods are longer but costs risk is real.
National Minimum Wage
Deductions and required expenditure cannot reduce your pay below the applicable rate.
| Rate from 1 April 2026 | Hourly |
| Aged 21 and over (National Living Wage) | £12.71 |
| Aged 18 to 20 | £10.85 |
| Under 18 | £8.00 |
| Apprentice rate | £8.00 |
| Accommodation offset | £11.10 per day |
Figures last reviewed [date].
HMRC enforces the minimum wage and can require back-pay and impose penalties. That route runs alongside, not instead of, an individual claim.
Do not simply stop working
Refusing to attend or to perform your duties exposes you to allegations of misconduct or breach of contract, even where you are genuinely owed money. Take advice before withdrawing labour.