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Money docked from your pay: when it's legal and when it isn't

Q: What the law says?

Under the Employment Rights Act 1996 (section 13), an employer may not deduct from wages unless one of these applies: the deduction is required or authorised by law (such as tax and National Insurance); it is allowed by a term of your contract that you were shown in writing beforehand; or you agreed in writing in advance to that specific deduction. If none applies, the deduction is unlawful.

A till shortfall, a broken item, «paying back» training — employers sometimes dock this from pay. But by law they cannot simply take money.

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British pound coins on a table — An employer cannot simply dock money from your wages. Photo: ONLYWAY NEWS

Sometimes a payslip is lower than expected: docked for a shortfall, damaged stock, a uniform or training. The law here is strict.

What the law says

Under the Employment Rights Act 1996 (section 13), an employer may not deduct from wages unless one of these applies: the deduction is required or authorised by law (such as tax and National Insurance); it is allowed by a term of your contract that you were shown in writing beforehand; or you agreed in writing in advance to that specific deduction. If none applies, the deduction is unlawful.

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What it means in practice

«We'll dock you for the broken cup» or «we'll take it off for the shortfall», said verbally, is not a basis. If your contract has no such clause and you did not agree in writing, the deduction is unlawful — even if you did break something. The exception is an overpayment of wages made by mistake, which the employer may recover.

An unlawful deduction counts as an underpayment: you can ask for it back, and if refused, claim at an employment tribunal, usually within 3 months.

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Published 23 October 2026, 16:36 1 min read Editorial desk of the British newspaper ONLYWAY NEWS - LONDON - UK

Sources

Employment Rights Act 1996, s.13 — legislation.gov.uk