Spotted something on your payslip that doesn’t add up? Before you assume it’s a mistake — or that your employer’s in the wrong — it helps to know exactly what UK law allows. Employers can only take money out of your wages in specific situations, with strict rules on how much and how they tell you first. This post is part of our series on Your UK Pay Rights, Explained — worth reading for the full picture on pay, holiday and payslips.

When can your employer legally deduct money from your pay?

Under the Employment Rights Act 1996, an employer can only make a deduction from your wages if at least one of these applies: it’s required by law, such as tax, National Insurance or a court-ordered debt payment; your employment contract specifically allows it; you’ve agreed to it in writing beforehand; they’re correcting a genuine overpayment of wages or expenses; you were off work due to a strike or industrial action; or you’ve agreed to a salary sacrifice arrangement, for example for a pension or cycle-to-work scheme. Outside of these, your employer needs your written consent every time. See GOV.UK’s guidance on deductions for the full list.

Deductions that need your written agreement first

Some deductions — like training costs, uniform charges or till shortfalls — are only lawful if you agreed to them in writing before the deduction was made, and your contract allows it. Your employer also has to tell you in writing exactly how much you owe and how they intend to recover it, before it comes out of your pay. If you were never shown anything in writing and never signed off on a deduction, that’s a strong sign it shouldn’t have happened. Your employer also can’t dip into tips, service charges or gratuities they have control over — those are protected separately, aside from the usual tax and National Insurance.

Work in retail or hospitality? The 10% shortfall rule

If you work in a shop, café, bar or restaurant, you get extra protection when it comes to till or stock shortfalls. Your employer can take a maximum of 10% of your gross pay (before tax and National Insurance) in any one pay period to cover a shortfall — even if the full amount owed is higher. Say there’s a £50 till shortfall and you’re paid £250 gross a week: your employer can only take £25 that week, then recover the rest from a later payslip. They must reclaim the money within 12 months of finding the shortfall, and tell you in writing beforehand. This 10% cap doesn’t apply to your very last payslip if you leave the job — your employer can take the full amount owed from your final pay (Acas).

Can a deduction take you below minimum wage?

Generally, no — deductions can’t reduce your pay below the National Minimum Wage, even if you agreed to them. There are a handful of exceptions: tax and National Insurance, something you’re contractually liable for (like a till shortfall or damage caused by reckless driving), repaying a loan or wage advance, correcting an accidental overpayment, buying shares in the business, employer-provided accommodation (within set limits), or deductions for your own benefit, such as pension contributions or union subscriptions. Outside those categories, if a deduction pushes your take-home pay under the minimum wage rate, it isn’t allowed.

Deductions employers get wrong — and how to spot them

The most common mistakes: no written notice before a deduction, a deduction that isn’t mentioned anywhere in your contract, more than 10% taken in one go for a retail shortfall, or pay dropping below minimum wage without one of the specific exemptions applying. The easiest way to catch these is to check your payslip against the hours and shifts you actually worked — hard to do from memory if your rota changes every week. wac logs every shift as you work it, so you’ve always got an accurate record to compare against what actually lands in your account.

What to do if you think a deduction is unlawful

Start by raising it informally with your employer or manager — it’s often a payroll error rather than anything deliberate. If that doesn’t resolve it, you can raise a formal grievance, contact Acas for free advice, or speak to your trade union rep if you have one. If it’s still not sorted, you can take a claim to an Employment Tribunal for an unlawful deduction from wages. There’s a strict time limit: 3 months minus 1 day from the date of the deduction, or the most recent one if there’s been more than one. You can claim back up to 2 years of deductions if they’re linked or less than 3 months apart. Read our guide on what to do if you’ve been underpaid for a step-by-step walkthrough.

Frequently asked questions

Can my employer deduct money without telling me first?

No. Except for standard deductions like tax and National Insurance, your employer must tell you in writing how much you owe and how they’ll recover it before making a deduction you haven’t already agreed to.

Can they take the full amount from my final payslip?

Yes — for retail and hospitality till or stock shortfalls, the 10% cap only applies while you’re still employed. If you leave, your employer can take the full outstanding amount from your last pay, as long as it’s provided for in your contract.

What if I never agreed to a deduction in writing?

If nothing was agreed in writing and it’s not something required by law or a specific overpayment correction, the deduction is likely unlawful. Raise it with your employer first, in writing, and keep a copy of your payslips and any correspondence.

How far back can I claim for unlawful deductions?

You have 3 months minus 1 day from the deduction to start an Employment Tribunal claim. If the deductions are linked or happened less than 3 months apart, you can claim back up to 2 years.

Whatever’s on your payslip this month, the easiest way to know if it’s right is to have your own record of the hours and shifts behind it. wac tracks every shift automatically, so you’re never trying to reconstruct your hours from memory when something looks off. Download it free and keep your own record, pay period after pay period.