Employment Advice

Pay and Wages, Pay cuts, Protection from ‘Unauthorised Deductions’ from your Pay

Author: Lesley Furber Comments Print This Post Print This Post

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Pay and Wages are slightly different -

Pay is the basic amount you should be paid (e.g. your monthly or weekly rate).

Your Wage can also include any bonuses or commission you are entitled to, holiday payments, statutory payments (sick pay, maternity pay).  Wages do not include expenses owed, pension and redundancy payments or compensation for loss of office.

Unauthorised Deductions from Pay and Wages -

Employees and Workers are protected from employers making unathorised deductions from their pay or wages.
Your employer cannot deduct money from your pay unless:

  • It is required by law (e.g. National Insurance contributions, tax, student loan repayments)
  • It is allowed by a term in your employment contract (but you must have seen a written copy of that part of the contract)
  • It is a statutory payment due to a public authority
  • You have not worked due to taking part in 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.
Before making any deductions, your employer must tell you in writing the full amount you owe and make a demand for this payment and you must give written consent to this deduction, before your employer makes the deduction.

Unauthorised deductions from for e.g. redundancy payments (i.e. not pay or wages) are not protected, but you may be able to claim for breach of contract if you are entitled to the payment in your employment contract.

If your employer deducts money from you without following the law -
After checking your payslip and contract for an explanation, try to speak to your employer first to find out why, or a Trade Union representative if you are a member.  Ultimately you have right to make a claim at Employment Tribunal for your money.

Pay Cuts

If your Employer is considering cost-cutting measures that includes pay cuts, then a pay cut should not be imposed upon an employee without their consent. They should seek your agreement and confirm the change in writing, informing you if this is a permanent change (or if there is a time limit).
If you do not accept the proposed change you should -
  • make it clear, in writing, that you are working under protest or
  • resign on the grounds that your employer has breached your contract of employment by imposing a unilateral change.
In either case you should raise a grievance detailing your complaint. You will then be in a position to bring a claim for unlawful deduction of wages, breach of contract and/or, if you have resigned, constructive dismissal.

Your Employer, if you do not accept the change, may terminate your existing contract and re-engage you on a new contract.  This is a dismissal so you could make a claim for unfair dismissal at an Employment Tribunal (although your employer will probably claim this was a fair dismissal for business reasons).

As this can be a very complicated area, please take advice from your Trade Union, or the Citizens Advice Bureau or elsewhere before proceeding down this route.

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If you work in the UK Media Industries and have a question about this or any other topic, please e-mail us at workline@freelanceadvisor.co.uk

Please note that the advice given on this website and by our Advisors is guidance only and cannot be taken as an authoritative interpretation of the law. It can also not be seen as specific advice for individual cases. Please also note that there are differences in legislation in Northern Ireland.


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