Demand for Unpaid Wages (Unlawful Deduction from Wages)
Formal demand to an employer for payment of unpaid wages or notice pay, citing the prohibition on unlawful deductions under section 13 of the Employment Rights Act 1996.
When to use this template
Use this letter when your employer has failed to pay wages you are owed, has made an unauthorised deduction from your pay, or has not paid your notice entitlement. Section 13 of the Employment Rights Act 1996 prohibits employers from making deductions from wages unless authorised by statute, contractual agreement, or your prior written consent. An Employment Tribunal claim for unlawful deduction must be brought within 3 months (less one day) of the deduction.
When NOT to use this template
Do not use this letter to claim statutory redundancy pay (separate calculation applies) or if the dispute is purely about the interpretation of a complex bonus scheme — take employment law advice first. If the employer is insolvent, you may need to claim from the National Insurance Fund via the Insolvency Service rather than the employer directly.
Legal Basis
Employment Rights Act 1996, s.13 (right not to suffer unlawful deductions from wages); s.27 (definition of wages); National Minimum Wage Act 1998 (if the underpayment also results in pay below NMW). Employment Tribunal claims under Part II ERA 1996 must be brought within 3 months less one day of the deduction (or last in a series of deductions).
Common Mistakes to Avoid
- ✗Missing the 3-month minus one day time limit for Employment Tribunal claims — start ACAS Early Conciliation within this period if the employer does not pay
- ✗Not itemising each deduction separately — a clear breakdown strengthens your claim
- ✗Not checking your payslips and employment contract to confirm the correct entitlement before writing
- ✗Failing to include notice pay separately — if employment was terminated, statutory minimum notice pay (ERA 1996 s.86) is also wages
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Letter preview
[YOUR FULL NAME] [YOUR ADDRESS] [YOUR EMAIL ADDRESS] [DATE OF LETTER] [EMPLOYER NAME] [EMPLOYER ADDRESS] Employee name: [YOUR FULL NAME] Employee reference / payroll number: [EMPLOYEE / PAYROLL REFERENCE NUMBER] --- Dear Sir or Madam, **FORMAL DEMAND — UNLAWFUL DEDUCTION FROM WAGES** **Employment Rights Act 1996, Section 13** I am writing to formally demand payment of wages that I am owed and which have been unlawfully withheld from my pay. **Background** I am / was employed by [EMPLOYER NAME] as [YOUR JOB TITLE] [PERIOD OF EMPLOYMENT (E.G. FROM [DATE] TO [DATE] / CURRENTLY EMPLOYED)]. **Amounts Owed** The following amounts have not been paid to me: [ITEMISED BREAKDOWN OF AMOUNTS OWED] Total outstanding: £[TOTAL AMOUNT OWED (£)]. **Legal Position** Section 13 of the Employment Rights Act 1996 provides that an employer shall not make a deduction from wages unless it is authorised by statute, the worker's contract, or the worker's prior written consent. No such authorisation exists in respect of the amounts identified above. The non-payment / deduction described above is therefore unlawful. **Demand** I require you to pay the sum of £[TOTAL AMOUNT OWED (£)] to me within 14 days of the date of this letter, by bank transfer to the account you hold for my salary payments. If you dispute that the sum is owed, please provide written reasons within 14 days. If I do not receive payment or a satisfactory written explanation within 14 days, I will notify ACAS to commence Early Conciliation as a preliminary step to issuing an Employment Tribunal claim for unlawful deduction from wages under Part II of the Employment Rights Act 1996, without further notice to you. Yours faithfully, [YOUR FULL NAME]
Unfilled fields appear as [FIELD NAME]. Review the letter carefully before sending. This template is a starting point — adapt it to your specific circumstances.