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Unpaid wages, bonus or commission

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Sarah Everton from Employment Law team

Sarah Everton


Head of Employment

Email Sarah

Wages or holiday pay being withheld?

Dispute over bonus or commission payment?

As an employee, you are entitled to be paid according to your contract of employment. If your employer does not pay you money that is owed, it can amount to an unlawful deduction that entitles you to apply to an employment tribunal for compensation.

The most common examples of unlawful deductions made by employers are:

  • Bonuses – if the amount of an unpaid bonus can be quantified, then an employee can claim it as an unlawful deduction.
  • Underpayment of commission – if an employee is paid less commission than is due, this may be an unlawful deduction.
  • Tips – if a worker is entitled to tips (or part of a “tronc”) which are not paid, then it is possible to bring a claim.
  • Holiday pay – a failure to pay outstanding holiday pay when employment terminates has been held to be a deduction from wages.
  • Late payment of wages – this may lead to a claim.
  • Reduction in pay – if the employer reduces pay and does not have the contractual right to do so or has not obtained an employee’s agreement, the shortfall will be an unlawful deduction.
  • Pay rises – conversely, if the employer promotes an employee or agrees an annual pay rise then fails to implement the new rate of pay, this is an unlawful deduction.

If you believe you have suffered an unlawful deduction from wages, you may be entitled to make a claim. Our experienced employment solicitors can deal with your employer on your behalf, and advise you about making a claim to the employment tribunal.

Based in Stoke-on-Trent, Staffordshire, our specialist employment solicitors offer independent legal advice and representation on all types of employment law problems. To find out more, contact our employment law solicitors or call 01782 577000.

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