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Unlawful deductions

by Philip

A question that is regularly asked is can an employer not pay an employee if that employee is in breach of contract. The question normally arises when the employment relationship ends.

The position is clear. Unless the employer has signed authority from the employer to authorise the deduction then no deduction is allowed.

The case reported here illustrates the point. An employment agency worker agreed with an employment agency to work for a client for a fixed term from January to May.

The worker only completed two days of the assignment and then left. The agency did not pay the worker on the basis that the client had not paid them and they believed the worker was in breach, having left 2 days into employment.

The EAT held that the failure to pay the wages amounted to an unlawful deduction as there was no lawful basis to withhold the sum due.

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2 responses to “Unlawful deductions”

  1. dear sir or maddam .
    my ex employer qwes me one week in hand wages and 5 days wages …n he refuses to pay me i left the company due to his foule langwage and direct threat s ..
    but i also did not get any payslips with my wages and he wefuses to give any employee payslips …
    i think this is one big tax fiddle ..
    the man im talking about is me (fred wren ) who is banned from running any company by v.o.s.a…
    his daughters now run the company for him but he is in charge still ,..
    do i have to take the 2 directors to court whitch (are they his daughters) ….
    do i have to get a county court summons to get my wages from him … thanks t marron …… bus driver ….

  2. Thanks for your query. If an employee is owed money by an employer, this can be recovered through an Employment Tribunal as an unauthorised deduction from wages claim or through the small claims court as a breach of contract claim.

    If you would like assistance, we can offer you an initial fixed fee appointment for £150 plus VAT.

    Please give me a call on 0870 350 5805 if you would like to make an appointment.

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