Deductions from Pay

Employers are prohibited from making deductions from wages under Part II of the Employment Rights Act 1996 unless:

i) the deduction is required or authorised to be made by virtue of a statutory provision (e.g. PAYE tax or national insurance) or a relevant provision of the worker’s contract, or

ii) the worker has previously signified in writing his agreement or consent to the making of the deduction

This does not prevent deductions to reimburse employers for an overpayment of wages or expenses.

However, other deductions are unauthorised deductions which are actionable by the worker.