If you are an employee, you have a right to know the amount you are to be paid and how often. If your employer wants to make deductions from your pay, there are rules they must follow.
Your contract of employmentA contract of employment is a legally binding agreement between an employer and employee. The contract doesn't have to be in writing, although your employer must give you a written statement of the main terms of your employment within two months of the day you start work. This statement will include information about your pay.
More..What can be deducted from your pay?Your employer is not allowed to make a deduction from your pay unless:
* your contract says they can - and your employer has given you a written copy of the part of the contract which says so, or a written explanation of it, before making the deduction
* it is required or authorised by law, such as income tax, national insurance or student loan repayments
* you have agreed in writing to a deduction before the conduct takes place for which your employer proposes to make a deduction
If you were overpaid on a previous occasion then these rules do not apply. Your employer will often be allowed to recover the overpayment. You should speak to a lawyer, an Acas advisor (Labour Relations Agency in Northern Ireland) or a Citizens Advice Bureau advisor for more information about how and when you might be able to prevent your employer from taking back an overpayment.
Other situations where the rules don't apply include if you took part in industrial action or if a deduction is made under a court order. Whatever the situation, your employer must still comply with the terms of your contract.
If you haven't been paid at all, this counts as a deduction from your pay of all the pay due to you.
The right to protection from unauthorised deductions from pay covers anyone who is classed as a worker. 'Worker' has a specific legal meaning - check if you are unsure of you employment status.
* More about employment status * Read more about contracts of employment * More on breach of contractRetail workIf you do retail work (for example, if you work in a shop) you have extra protection. Your employer is not allowed to take more than 10 per cent of your gross wages from your take-home pay on any individual payday to make up the shortfall from a cash or stock shortage. If this isn't enough your employer can continue to take money from your wages on subsequent paydays, but not more than 10 per cent on a single payday. If you leave the job, your employer can take the full amount owed.
You can complain to an Employment Tribunal if your employer does not follow these rules.
What to do if you haven't been paid in fullIf you haven't received your full pay (or any pay) try these simple steps:
* Check your payslip to see if it tells you why you haven't been fully paid
* Check your contract to see if there is anything that allows your employer to make deductions from your pay
* Speak to your employer to see if you can sort the problem out with them
* If you have an employee representative (for example, a trade union official) you can ask for their help.
If this doesn't work, you have the right to go to an Employment Tribunal to get your money. You can also try and reclaim money you've lost (including the extra losses caused by you not receiving the money on time, for example, bank charges) by making a breach of contract claim.
* More about sorting out work problems * More on breach of contractLeaving your jobIf you are forced to resign as a result of your employer refusing to pay you, you might be able to make a constructive dismissal claim.
If you leave a job and serve an agreed notice period, you're still entitled to be paid in full. This includes any additional payments, such as holiday pay, that are covered in your contract of employment.
If during the notice period you are on maternity, paternity, parental or adoption leave, off work through illness or on holiday, or you're ready and willing to work but your employer provides you with none, you may still be entitled to a minimum level of pay.
* Notice and notice pay - find out more * More about constructive dismissalWhere to get helpThe Advisory, Conciliation and Arbitration Service (Acas) offers free, confidential and impartial advice on all employment rights issues. You can call the Acas helpline on 08457 47 47 47 from 8.00 am to 6.00 pm Monday to Friday.
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Special Rules For Retail Workers - CASH SHORTAGES DEDUCTIONSThere are special rules relating to cash shortages or stock deficiencies for people working in retail employment (shop workers, bar staff etc.). If you are involved in selling or supplying goods to the public or fellow workers, or receiving money in this capacity, these rules apply to you. They apply even if you only do so on odd occasions, or are not directly involved in the sale or supply of goods, but handle money. For example, a cashier working in a staff canteen could be covered by these rules.
Maximum deductions for retail workersIf your employer has reached agreement with you, either in writing or in your contract, that a deduction can be made for shortages, then s/he must: -
* notify you in writing of the total amount owed before taking any money.
* make a demand in writing for payment on a pay day.
* any demand must not exceed 10% of the gross amount of that pay packet because of shortages, although similar deductions can be made from future pay packets. (Note: the 10% restriction does not apply to deductions from a final pay packet).
* make any such deductions within twelve months of discovering the shortages.
What does this mean in practice?If you are a shop worker selling goods, and your contract of employment allows your employer to recover till cash shortfalls, then your employer must first let you know of the shortfall and the full amount owing. The maximum your employer can take from one pay packet is 10% of your gross pay (i.e before Income Tax and National Insurance). For example, if there is a shortfall of ?50, and your employer pays you ?100 per week, the maximum s/he can take from your weekly salary is ?10, until the shortfall is repaid (ie. in this example it would take five weeks for you to repay the shortfall to your employer).
NB: If you leave your job, and a shortfall is owed the 10% rule does NOT apply.
