Your Employer Is Not Paying Your Wages
Non-payment of wages is unlawful. You have the right to recover unpaid wages through the employment tribunal, and if you are paid below the National Minimum Wage, you can also report your employer to HMRC.
Quick Answer
Failure to pay wages is an unlawful deduction from wages under the Employment Rights Act 1996, ss.13โ27. You can bring a claim in the employment tribunal, but you must start ACAS early conciliation within three months less one day of the date on which the wages should have been paid. You can also report underpayment of the National Minimum Wage to HMRC.
Full Explanation
The right not to suffer an unlawful deduction from wages is contained in the Employment Rights Act 1996, ss.13โ27. 'Wages' is broadly defined and includes salary, holiday pay, commission, and most other financial entitlements arising under the contract of employment. A deduction from wages is unlawful unless it is authorised by statute (e.g. tax and National Insurance), expressly permitted by the contract in writing, or the worker has given prior written consent.
A complete failure to pay wages โ not merely a deduction โ is also covered by the unlawful deductions regime. If your employer has simply not paid you on your contractual pay date, you have a claim from that point. You may also have a breach of contract claim, which can be brought in the tribunal (up to ยฃ25,000) or the county court (for higher amounts).
Before bringing a tribunal claim, you must contact ACAS and start the early conciliation process. You do this by completing a simple online form or calling ACAS. Once you contact ACAS, the limitation clock is paused ('frozen') while conciliation takes place. If conciliation does not resolve the matter โ or you or the employer opt out โ ACAS issues an early conciliation certificate, and your tribunal deadline is recalculated.
If you are paid below the National Minimum Wage or National Living Wage, the route is different: you should report your employer to HMRC's Pay and Work Rights Helpline. HMRC can compel the employer to make good the underpayment and impose a financial penalty. You do not need a tribunal claim for HMRC enforcement, although you retain the right to bring one.
For chronic non-payment amounting to a fundamental breach of contract, you may also be entitled to resign and claim constructive unfair dismissal โ though this is a higher-stakes step that should only be taken with advice.
Legal Basis
- ยงEmployment Rights Act 1996, ss.13โ27 (unlawful deductions from wages)
- ยงNational Minimum Wage Act 1998
- ยงEmployment Tribunals Act 1996, s.18A (mandatory early conciliation)
- ยงWages Act 1986 (predecessor legislation, now consolidated into ERA 1996)
What To Do
Write to Your Employer Demanding Payment
Write formally โ by email or letter โ to your employer or HR department identifying the dates and amounts of unpaid wages and demanding payment within 7 days. Keep a copy. Many employers will pay immediately on receiving a formal demand, particularly if payroll administration is to blame.
Contact ACAS to Start Early Conciliation
If payment is not made within a reasonable period, contact ACAS (0300 123 1100 or acas.org.uk) to start early conciliation. This pauses the limitation clock. ACAS will attempt to mediate between you and your employer. This step is mandatory before you can file an ET1.
File an ET1 Within the Adjusted Deadline
If conciliation fails, ACAS issues a certificate. Calculate your deadline carefully โ it is three months less one day from the date of the last underpayment, minus the conciliation period. File the ET1 online at employment-tribunals.service.gov.uk.
Consider an HMRC Complaint for NMW Underpayment
If your wages fall below the National Minimum Wage, report this separately to HMRC via their online complaints form or the Pay and Work Rights Helpline (0300 123 1100). HMRC enforcement is free and does not require you to bring a tribunal claim.
Consider a County Court Claim for Larger Sums
If the unpaid wages exceed ยฃ25,000, the employment tribunal's breach of contract jurisdiction is capped. Consider a county court claim for the excess, or bring the full claim in the county court as a breach of contract action.
Important Deadlines
Important Warnings
The three-month-less-one-day limitation period for wage claims is strict โ missing it by even one day will usually bar your claim at the employment tribunal.
If you are also owed unpaid holiday pay, that is a separate unlawful deduction claim โ include it in the same ET1 but identify it separately.
Resigning because of non-payment of wages may entitle you to a constructive dismissal claim, but take advice first โ you need two years' service for unfair dismissal (unless the dismissal is for an automatically unfair reason).