Unpaid Wages Claim UK: How to Get What You're Owed
Unpaid Wages Claim UK: How to Get What You're Owed
This article applies to England, Wales and Scotland.
In brief: If your employer hasn't paid you, you can bring an unlawful deduction of wages claim under the Employment Rights Act 1996. No minimum service is required. You have 3 months minus 1 day from the date you should have been paid, and you can recover up to 2 years of underpayments. You must contact ACAS before going to tribunal.
Last updated: February 2026
You've done the work. You haven't been paid. Maybe it's a missed payslip, an unpaid bonus, or wages that keep arriving late. Whatever the situation, being short-changed by your employer is stressful, and it can leave you struggling with bills, rent, and everyday costs.
The law is clear on this. Under sections 13 to 27 of the Employment Rights Act 1996, your employer cannot withhold or reduce your pay unless a specific legal exception applies. If they do, it counts as an unlawful deduction from wages, and you have the right to claim it back.
This guide explains what counts as unpaid wages, what steps to take, and how to make a claim if your employer won't pay up.
What Counts as Unpaid Wages?
"Wages" under the ERA 1996 covers more than just your basic salary. Section 27 defines wages as any sums payable to you in connection with your employment. That includes:
- Basic salary or hourly pay
- Overtime pay (where contractually agreed)
- Commission and bonuses you've earned
- Holiday pay
- Statutory sick pay
- Statutory maternity, paternity, or adoption pay
- Pay during notice periods (in most cases)
- Tips allocated through a formal system
It does not include redundancy payments, expenses, pension contributions, loans, or benefits in kind. Those may be recoverable through other legal routes, but they fall outside the unlawful deduction of wages regime.
When Is Non-Payment Unlawful?
Under section 13(1) of the ERA 1996, your employer can only deduct money from your wages in three situations:
- The law requires it — income tax, National Insurance, student loan repayments, or court-ordered deductions
- Your contract authorises it — and you were given a written copy of the relevant term before the deduction was made
- You agreed to it in writing — before the deduction happened
If your employer withholds pay without meeting one of those conditions, it's an unlawful deduction. That applies even if the non-payment was a mistake rather than deliberate.
Late payment also counts. If you were supposed to be paid on the 25th and the money didn't arrive, that's treated as a deduction from the date it was due.
What to Do First: Talk to Your Employer
Before going down the legal route, raise the issue directly. Payroll errors do happen, and a quick conversation or email may resolve things on the spot.
If you're still employed, put your concern in writing. A simple email setting out the amount owed, the dates it relates to, and when it should have been paid creates a paper trail and gives your employer a chance to fix it.
If that doesn't work, raise a formal grievance. Your employer is legally required to investigate and respond. Follow their grievance procedure, and keep copies of everything.
How to Make a Claim
If informal steps and the grievance process haven't resolved things, you can bring a formal claim. There are two main routes:
1. Employment Tribunal (Unlawful Deduction of Wages)
This is the most common route. Key points:
- No qualifying period — you can claim from day one of employment, and the right extends to workers as well as employees
- Time limit: 3 months minus 1 day from the date of the deduction (or the last in a series of deductions)
- You must contact ACAS first to start early conciliation before you can file a claim
- No upper limit on the amount you can be awarded for unlawful deduction of wages (unlike breach of contract claims, which are capped at £25,000 in the tribunal)
- You can claim back up to 2 years of underpayments, provided the deductions form part of a series and the last deduction is within the time limit
If you were underpaid multiple times, the time limit runs from the date of the last underpayment. Following the Supreme Court's decision in Chief Constable of the Police Service of Northern Ireland v Agnew (2023), a gap of more than 3 months between deductions does not automatically break the series. The test is whether the deductions are linked by a common fault — for example, the same payroll error applying each month.
2. County Court (Breach of Contract)
If your claim is better framed as a breach of contract — for example, your employer failed to honour a specific contractual term about pay — you can bring a claim in the county court. For more on this route, see our guide: Breach of Contract at Work. The time limit is longer (up to 6 years), but you'll usually have to pay court fees upfront.
Most people use the tribunal route because it's free to file and quicker, but the county court can be useful for larger or more complex claims.
What the Tribunal Can Award
If your claim succeeds, the tribunal will order your employer to pay the amount that was unlawfully deducted. The award covers the net amount you should have received.
The tribunal can also award additional compensation if you can show the non-payment caused financial loss, such as bank charges, late payment fees on bills, or interest.
There's no cap on awards for unlawful deduction of wages. This makes it different from breach of contract claims brought in the tribunal, which are limited to £25,000 under the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994.
Can My Employer Retaliate?
No. Under the ERA 1996, it is unlawful for your employer to dismiss you or treat you unfairly for asserting your right to be paid. If your employer sacks you, cuts your hours, demotes you, or subjects you to any other detriment because you raised the issue or made a claim, you may have a separate claim for:
- Automatic unfair dismissal (no qualifying period required)
- Detriment for asserting a statutory right
These protections exist regardless of how long you've worked for the employer.
Time Limits Are Strict
The 3 months minus 1 day deadline is enforced strictly. Tribunals rarely grant extensions, and only where it was "not reasonably practicable" to claim in time.
Contacting ACAS pauses the clock while early conciliation takes place, which can add up to 12 weeks (extended from 6 weeks as of 1 December 2025). But you should start the process as soon as you realise you won't get paid voluntarily.
Important: From October 2026, most employment tribunal time limits are expected to extend from 3 months to 6 months under the Employment Rights Act 2025. This change has not yet come into force — as of February 2026, the 3-month limit still applies. Note that the time limit extension may not apply to breach of contract claims.
What Evidence to Gather
Strong evidence makes a real difference. Start collecting it early:
- Payslips — showing what you were actually paid
- Bank statements — confirming amounts and dates
- Your contract or written terms — showing what you should have been paid
- Emails or messages — any correspondence about the missing pay
- Timesheets or rotas — evidence of hours worked
- Grievance records — proof you raised the issue internally
If you don't have a written contract, you can still claim. Verbal agreements and implied terms are legally binding. But having written evidence strengthens your case considerably.
What If My Employer Is Insolvent?
If your employer can't pay because they've gone into administration, liquidation, or are otherwise insolvent, you may be able to recover certain payments from the Redundancy Payments Service. This covers arrears of pay (up to 8 weeks), holiday pay (up to 6 weeks), notice pay, and redundancy pay, subject to the statutory weekly pay cap of £719.
Frequently Asked Questions
Do I need 2 years' service to claim unpaid wages? No. Unlawful deduction of wages claims have no qualifying period. You can claim from day one, and the protection applies to workers as well as employees.
What's the difference between unlawful deduction and breach of contract? Unlawful deduction covers non-payment or underpayment of "wages" as defined by the ERA 1996. Breach of contract is broader and can cover other financial terms your employer has broken. In the tribunal, breach of contract claims are capped at £25,000; unlawful deduction claims have no cap.
Can I claim for unpaid overtime? Yes, if your contract entitles you to overtime pay and it hasn't been paid. If overtime is purely voluntary and your contract doesn't guarantee pay for it, recovery may be more difficult.
What if I've already left the job? You can still claim. Many people bring unpaid wages claims after leaving employment. The time limit runs from the date of the deduction, not the date you left.
Can I claim for unpaid wages and unfair dismissal at the same time? Yes. It's common for employees to bring multiple claims. See our unfair dismissal guide for more on that route. Around two thirds of tribunal claims include more than one type of complaint.
Will ACAS charge me? No. ACAS early conciliation is free and confidential. If your employer agrees to pay during conciliation, you won't need to go to tribunal at all.
This guide is for general information only and does not constitute legal advice. Employment law can be complex, and the right approach depends on your individual circumstances. If you're unsure about your situation, consider speaking to a solicitor or contacting ACAS for free advice.
Sources
- Employment Rights Act 1996, Part II — Protection of Wages — legislation.gov.uk
- If your wages are not paid — ACAS — acas.org.uk
- Making a claim to an employment tribunal (T420) — GOV.UK — gov.uk
- Employment Rights Act 2025 — ACAS — acas.org.uk
- Your rights if your employer is insolvent — GOV.UK — gov.uk
- Employment tribunal time limits — ACAS — acas.org.uk