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Pay Deductions
 

PAY

Claims relating to pay arise in two ways. An individual can either claim that his employer has made unlawful deductions from his wages or he can claim damages for breach of contract. One or other remedy will always be available. The type of claim will usually depend upon whether the individual is still in employment.

Someone in employment who believes he has been underpaid can only bring a claim for unlawful deductions from his wages. Once an individual is no longer employed, he can either make a claim for unlawful deductions from his wages, he can claim damages or (in some circumstances) he can claim both.

 

'Wages' are sums paid for work done under a worker's contract.

Generally speaking, any other sum must be recovered damages for breach of contract. Should either claim succeed the Tribunal will make an award of money payable to the employee. There is no limit on the amount an Employment Tribunal can award for unlawful deductions from pay. A Tribunal cannot award more that £25,000 in damages for breach of contract.

The burden of proof is always on the employee. Very often disputes relate to the interpretation of the contract of employment (whether something was ever agreed.... if so, exactly what was agreed etc.).