Deductions from pay | Pay and benefits | EEF

Deductions from pay

Employers make many deductions from employees' pay, from tax and National Insurance contributions through to deductions for union subscriptions and repayment of loans. Your ability to make deductions is limited by provisions in the Employment Rights Act, which provide that you are not entitled to make a deduction from a worker's pay unless certain conditions are met. If you make a deduction from a worker’s pay in circumstances where the relevant conditions are not met, it will constitute an unlawful deduction and the worker will be able to bring a claim in the employment tribunal. Payments from workers to employers are subject to the same rules.

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