Deductions from Wages UK: Employer Guide
Employers must manage wage deductions with precision because the legal framework in the UK is strict and employees are heavily protected against unauthorised reductions in pay. Payroll decisions that appear routine can carry significant risk if the deduction is not explicitly permitted under legislation, contract or written employee agreement. HR teams must therefore be clear […]
Employee Accidental Overpayment Salary Guide
Accidental salary overpayments create immediate financial, legal and operational pressure for employers. Whether caused by payroll input errors, incorrect hours, duplicated payments or outdated employee records, an overpayment must be handled carefully to avoid disputes, preserve trust and remain compliant with the Employment Rights Act 1996. Under section 14(1) ERA 1996, employers have a statutory […]
Overpayment of Wages: Employer Rights
What are your options as an employer if there has been an overpayment of wages? The general rule is that if an employer has overpaid an employee, the overpayment of wages should be repaid even if the mistake was the employer’s. In other words, the employer is legally entitled to recover any salary overpayment from […]
Unlawful Deduction of Wages
Employees are protected by law from unauthorised sums being taken from their pay. If an employee can show that an employer has unlawfully taken money out of their wages, they may be able to take legal action to recover the money. However, if you as an employer believe you are owed money from an employee […]