Normally it is a matter for both the employer and employee to decide on terms and amounts of remuneration under a contract of employment. Remuneration can include basic pay, over-time, sick pay, commission, bonuses, pension schemes, maternity, paternity and adoption pay.

The terms agreed regarding payment must not be unlawful, for example lower than the national minimum wage or discriminatory.

The written particulars or contract of employment, must show how the employees wages have been calculated and the intervals of which payment will be made. Where payment is not made in accordance with the terms of the contract and the employee is ready and willing to work or is ill, a breach will arise. Where wages are intentionally not paid to the employee then this will almost invariably amount to a fundamental breach of contract and entitle the employee to resign and claim constructive unfair dismissal. If an employee is unwilling to work for a period of time, an employer is entitled to withhold payment for that period.

An employee is entitled to itemised payslips showing gross and net pay after deductions, either before or at the time his wages are paid.

Unless stated in the contract, there is usually no automatic right to a pay increase.

The obligation for an employee to do overtime may be an express or implied term. If overtime is a requirement of the job it must be set out expressly in the contract of employment detailing when an employee is entitled to claim and the rate of payment.

Deductions from Wages

The Employment Rights Act 1996 allows employers to make deductions from employees wages in limited circumstances only, where:

• The contract of employment allows the deduction.
• The employer is entitled to make the deduction by statute.
• Or the employee has previously agreed in writing that the deduction can be made.

An employee is not entitled to bring a claim against his employer where the deduction is made in respect of an overpayment, unless the employee disputes that the overpayment has been made. In certain circumstances, the employer can be prevented from recovering back an overpayment, where it can be proved that the employee was unaware of the overpayment, did not cause the overpayment to occur and has altered his position as a result of it.

Retail Workers

Retail workers are afforded special protection under the ERA, which limits the amount recoverable from employees in respect of cash and stock deficiencies.

Employers cannot recover more than 1/10 of the gross amount of wages payable to the worker each day, (unless it is the employee's final pay packet). The deduction must be made within 12 months of the date when the employer discovered or ought to have discovered the shortage.

As an employee, you should be aware that if you feel that your employer has made an unauthorised deduction from wages then you must first bring the matter to your employer's attention though the company's internal grievance procedure before commencing a claim in the Employment Tribunal.

An employee may, if appropriate, seek redress in the civil courts in which case legal aid may be available.

There are strict time limits for commencing claims in the Employment Tribunal and Courts.

If you believe you have a claim against your employer please complete our Free Online Assessment Form, now. We will then respond to you usually within 48 working hours, including a free, initial assessment of your claim.

Alternatively you can download the free initial assessment form and send it to net employment solicitors at the address on our contact page.