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Disclaimer: This is not legal advice. Legislation and case law change. Always consult a qualified solicitor for your specific situation.

UK Law Reference
All Topics

Wages & Pay Rights

The National Minimum Wage, unlawful deductions from wages, and how workers recover underpayments through the employment tribunal.

Commercial & Business
UK-wide

Introduction

Pay is protected by two main statutory regimes. The National Minimum Wage Act 1998 sets an hourly floor that rises every 1 April — from April 2026 it is £12.71 for workers aged 21 and over (the National Living Wage), £10.85 for 18 to 20-year-olds, and £8.00 for under-18s and apprentices. Part II of the Employment Rights Act 1996 then protects wages once earned: an employer may only make deductions that are required or authorised by statute or the contract, or that the worker has agreed to in writing in advance, and any shortfall between what was properly payable and what was paid counts as a deduction. Workers enforce both regimes in the employment tribunal, which is free to use, but strict time limits apply — generally three months from the deduction, with claims reaching back at most two years.

In Brief

From April 2026 the minimum wage is £12.71 (21+), £10.85 (18–20) and £8.00 (under-18s and apprentices). Your employer can only deduct from wages what the law requires, what a written contract term you were shown allows, or what you agreed to in writing in advance — and paying you less than what is properly payable counts as a deduction. Claim in the employment tribunal (free) within three months of the deduction, or of the last in a series; the tribunal can reach back at most two years.

Core Principles

1

National Minimum Wage Floor — Every worker is entitled to the minimum wage; the rate depends on age and apprentice status, workers must be at least school leaving age, and the National Living Wage applies from age 21. Rates change on 1 April every year (GOV.UK).

2

April 2026 Rates — £12.71 an hour for those aged 21 and over, £10.85 for 18 to 20-year-olds, and £8.00 for under-18s and apprentices.

3

Apprentice Rate — Apprentices get the apprentice rate if under 19, or 19+ and in the first year of their apprenticeship; once 19 or over and past the first year, they are entitled to the full rate for their age (so a 21-year-old past year one must get £12.71).

4

No Unauthorised Deductions — An employer shall not make a deduction from a worker's wages unless it is required or authorised by a statutory provision or a relevant provision of the contract, or the worker has previously signified written agreement or consent (ERA 1996, s.13(1)). In practice this means deductions must be required or allowed by law (National Insurance, income tax, student loan repayments) or agreed in writing.

5

Underpayment Is a Deduction — Where the total wages paid on any occasion are less than the total properly payable, the deficiency is treated as a deduction (ERA 1996, s.13(3)) — so short-payment, unpaid holiday pay and withheld commission are all claimable as unlawful deductions (Delaney v Staples [1992] 1 AC 687 on the scope of 'wages').

6

Series of Deductions — For a series of deductions, the three-month tribunal clock runs from the last deduction in the series (ERA 1996, s.23(3)); the Supreme Court in Agnew [2023] UKSC 33 held that gaps of more than three months do not automatically break a series.

7

Two-Year Backstop — A tribunal cannot consider deductions where the wages were paid more than two years before the claim was presented, for most types of wage claim (ERA 1996, s.23(4A)).

Key Statutes

Employment Rights Act 1996

1996

National Minimum Wage Act 1998

1998

Working Time Regulations 1998

1998

Employment (Allocation of Tips) Act 2023

2023

Leading Cases

Delaney v Staples

[1992] 1 AC 687

Chief Constable of the Police Service of Northern Ireland v Agnew

[2023] UKSC 33

Bear Scotland Ltd v Fulton

[2015] ICR 221 (EAT)

Uber BV v Aslam

[2021] UKSC 5

Common Scenarios

Employer docks pay for a till shortage

Unless a statutory provision or a written contractual term shown to you in advance authorises it, or you agreed in writing before the event, deducting the shortage from your wages breaches ERA 1996 s.13. (Retail workers have additional limits on such deductions.) You can claim in the employment tribunal within three months of the deduction, after ACAS early conciliation.

Paid below the minimum wage

From April 2026 a 22-year-old must receive at least £12.71 an hour. If you are underpaid, the shortfall is recoverable as an unlawful deduction and HMRC enforces the minimum wage against employers. An apprentice aged 21 who has completed the first year of their apprenticeship is also entitled to £12.71, not the £8 apprentice rate.

Months of underpaid holiday pay

Underpayments of holiday pay form a series of deductions: the claim must be brought within three months of the last underpayment, the series is not necessarily broken by three-month gaps (Agnew), and the tribunal can look back at most two years from presentation of the claim (s.23(4A)).

Frequently Asked Questions

What is the minimum wage right now?

From 1 April 2026: £12.71 an hour for workers aged 21 and over (the National Living Wage), £10.85 for 18 to 20-year-olds, and £8.00 for under-18s and apprentices. Rates change every 1 April.

When can my employer deduct money from my pay?

Only when the deduction is required or allowed by law (such as National Insurance, income tax or student loan repayments), authorised by a relevant written provision of your contract shown to you before the deduction, or you agreed to it in writing beforehand (ERA 1996 s.13). Consent given after the event does not authorise a deduction for earlier conduct.

How long do I have to claim unpaid wages?

Three months, beginning with the date of payment of the wages from which the deduction was made — or, for a series of deductions, the last in the series. The tribunal can extend only if a claim in time was not reasonably practicable. You must notify ACAS first, which pauses the clock, and the tribunal cannot look at deductions from wages paid more than two years before your claim.

Does it cost anything to bring a wages claim?

No — you do not have to pay a fee to make a claim to an employment tribunal, and ACAS early conciliation is free. Many claimants act in person or with free union or law centre support.

Important Deadlines

Unlawful deduction from wages claim to the employment tribunalBefore the end of 3 months beginning with the date of payment of the wages from which the deduction was made (ERA 1996, s.23(2))
Claim for a series of deductions3 months from the last deduction or payment in the series (ERA 1996, s.23(3))
Maximum look-back on deductions2 years ending with the date the claim is presented, for most wage types (ERA 1996, s.23(4A))
General tribunal deadlineUsually within 3 months of your employment ending or the problem happening, after ACAS early conciliation

Typical Costs

Typical Costs & Fees
Employment tribunal claimFree — no fee to make a claim
ACAS early conciliationFree
Reporting minimum wage underpayment to HMRCFree
Employment solicitor (if instructed)£150–£350/hour (estimate); unions and law centres often free