Unpaid or docked wages are usually an unlawful deduction claim in the employment tribunal, and the deadline is short: three months less one day from the deduction, paused while ACAS early conciliation runs. Holiday pay, final pay and notice pay all count. Underpayment of the minimum wage can also go to HMRC, which enforces for free.
An employer may only make deductions from wages that the law requires, the contract clearly allows, or you agreed to in writing beforehand. Anything else, including simply not paying, is an unlawful deduction claimable in the employment tribunal, where there is currently no fee to issue.
Holiday pay is wages. Untaken accrued leave must be paid when you leave, and historic underpayments can sometimes be claimed as a series of deductions. Notice pay and contractual sums owed on leaving can be claimed as breach of contract in the tribunal after employment ends, or in the county court with its six-year window.
If pay fell below the National Minimum or Living Wage, HMRC enforces it: they can compel arrears and penalise the employer, and the complaint is free and can be anonymous. Tips now have their own regime: the Employment (Allocation of Tips) Act requires qualifying tips to be passed on fairly.
Guide edition: August 2026. General information for England and Wales. Current law and your particular facts require assessment before action.
Payslips against hours worked, holiday accrued against holiday paid, the contract against the final payslip. One page, exact figures.
A written request or grievance stating the shortfall and a date. Many underpayments are corrected here, and the letter builds the record if not.
Mandatory before a tribunal claim and free; it pauses the deadline while ACAS tries to settle it.
Not resolved: issue the ET1. Deductions claims are decided on documents and arithmetic more than argument.
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Speak to Kestrel nowThree months less one day from the deduction, or the last in a series, to start ACAS early conciliation. County court contract claims after leaving carry six years. Move on the tribunal clock first.
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Deductions for training or equipment are only lawful if clearly agreed in writing in advance, and even then they can be challenged where they operate as a penalty. Check the paperwork before accepting the docking.
The law protects workers who assert statutory rights, and dismissal for doing so can be automatically unfair regardless of service. A measured written grievance is usually the safe first step.
Some routes may remain: a series of deductions can reset the clock, and after leaving, contract sums can go to the county court within six years. Get the dates checked before assuming it is gone.
The government's Insolvency Service pays certain arrears, notice, holiday and redundancy from the National Insurance Fund within caps. The claim goes through the insolvency practitioner, and it works.
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