Deductions from pay

Useful tools

Download a range of clauses relating to pay and benefits.

Explore downloads

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.

In order to access the remainder of this page, please log in or register: My account.

Disclaimer

We recommend that you take our advice before using any of the information or documents on this website. You should always seek specific legal advice before taking or refraining from any action. Information and documents on this website are prepared in accordance with the laws of England, Wales and Scotland. Users accessing from Northern Ireland should be aware that different laws and interpretations may be applicable to Northern Ireland.

Online payments are not supported by your browser. Please choose an alternative browser or make payments through the 'Other payment options' on step 3.