Issues regarding pay can cause both employees and employers substantial problems. For the employee, not receiving their correct pay, paying too much tax, or being paid late can very quickly lead to financial difficulties. According to a recent survey, close to 40% of UK households live pay cheque to pay cheque and not being paid would put them in severe financial constraints. Coupled with the current cost of living crisis, that figure is only set to rise. So what should you do if you have not been paid properly.
I've Been Paid Late
Much of whether you can pursue a late payment would depend on the exact wording of the contract. Most contracts will provide at payment date and therefore a failure to meet payments on that date can be a breach of contract. However that generally only applies to wages and things like pension payments, expenses and benefits may not be included.
Your options are:-
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in the first instance I would always recommend having an informal conversation with your employer. It may be an administrative error, a banking issue, or something else that is very easy to fix;
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if your employer still does not pay you on time, or is consistently paying you late you may decide that your employment is not stable enough and look for alternative work; and
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if you are owed money, you may be able to pursue this whether in the civil courts or via the employment tribunal as an unlawful deduction from wages or breach of contract claim. Before issuing a claim or leaving your role, you may wish to speak to your trade union (if you have one), or raise a grievance. If this still does not resolve your issue you may go to ACAS early conciliation, and if that does not work your last resort is to take your employer to court or a tribunal.
No matter what you do, if you have to rely on the employment tribunal the deadline for applying is 3 months less one day from when you should have received your papers. You need to notify ACAS before the deadline ends and seek an early conciliation certificate from them. It is therefore vital that you act as quickly as possible to avoid losing the opportunity.
You have more time in the civil courts (usually 6 years) but the procedure tends to be more complex and expensive so may not be worthwhile if you are only owed small amounts.
I Haven't Been Paid At All
As above, if your employed hasn't paid you it is likely to be a breach of contract or an unlawful deduction from wages. You should follow the steps above and always try and act as quickly as possible and in any event within 3 months if you are relying on the employment tribunal.
I've Had Pay Withheld
There are some circumstances where your employer may withhold pay from you. Your employer has the right to deduct wages where:
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the employment claim contract allows it;
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you have agreed to it;
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it is a legal requirement such as income tax or an attachment to earnings order; or
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you didn't work because you were taking part in strike or industrial action.
Your employer should not normally make deductions for any other reason, for example to "punish you" for a work mistake at work. If they did so, you may have a claim for unlawful deduction from wages.
I Have Not Received Sick Pay Or Parental Leave Pay
If you think you should have been entitled to pay for sick, maternity, paternity, adoption, or shared parental leave, the first step is to check whether you were actually entitled to this. You should check the government website, and also your contract to see whether you are entitled to more than the statutory allowance. If you think your employer has not paid you your statutory pay, you should contact HMRC within 6 months starting from the date you should have started to receive pay.
For any additional pay over the statutory amounts, you may have a breach of contract or an unlawful deduction from wages claim, as above.
I've Paid Too Much Tax
This most commonly happens when you have just started new job. You might pay emergency tax on an emergency tax code which mean you receive less take-home pay than you normally would. This is usually an issue with HMRC and you should contact HMRC to confirm your tax code. It may take a couple of months for HMRC's records to be updated and to provide your employer with your new tax code. Generally, your employer cannot pay you less tax than HMRC are saying they should and if they have been issued with an emergency tax code by HMRC, it is not within their discretion to change this.
If you need help getting paid by your employer, please contact Arvin Sandhu by email of on 01494 893542