Deductions from pay
Deductions from pay are amounts an employer takes from a worker’s wages where the law, contract or prior written agreement allows it.
Start with the authority to deduct
An employer cannot take money from wages just because it believes the amount is fair. In Great Britain, a deduction normally needs authority from the law, a specific contract term, the worker's prior written agreement or another recognised exception such as recovery of an accidental overpayment.
The Acas deductions guide sets out the current categories. Match the proposed deduction to one of them before payroll is changed. A broad clause should not be treated as permission for an unrelated charge.
Check the minimum-wage effect separately
Authority to deduct and minimum-wage treatment are different questions. Some lawful deductions reduce the pay counted for minimum-wage purposes, while limited categories do not. The reason for the deduction and who benefits from it can matter.
Do not rely on the employee's agreement as a shortcut. Record the calculation when uniforms, training, accommodation or another work-related cost is involved.
Explain and record every deduction
Tell the worker what will be taken, why, when and for how long. Show it clearly on the payslip and keep the contract clause, written authority, court order or statutory instruction that supports it.
If the worker challenges the amount, pause and check the source before repeating it. Correct a payroll error through payroll and keep the explanation with the revised figures. Northern Ireland has separate law and procedure, so use the nidirect deductions guidance for an NI worker rather than importing a Great Britain claim deadline.
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