Work Rights · Employment Basics
Your payslip and what can legally be deducted
You have a legal right to an itemised payslip, and employers can only deduct what's authorised by law, contract, or your written consent.
Your payslip is a legal document that shows exactly how you have been paid and what has been deducted from your wages. Understanding what you receive and what your employer can take from your pay protects you and helps you spot errors, underpayment, or unlawful deductions.
Your right to an itemised payslip
In the UK, every worker — including employees, agency workers, casual workers, and those on zero-hours contracts — has a legal right to receive a written itemised payslip at or before the time they are paid. This right comes from the Employment Rights Act 1996 and was extended to all workers (not just employees) in April 2019. It is a day-one entitlement; you can claim this right from your first day of work, regardless of how long you have been employed.
Your payslip must be clearly itemised and show:
- Your gross pay (the amount before any deductions)
- All variable deductions listed separately (income tax, National Insurance, student loan, each on its own line)
- Fixed deductions (shown as a total if your employer has provided a written statement of what they are)
- Your net pay (take-home pay — what you actually receive)
- The number of hours worked, if your pay varies by hours worked
A payslip that shows only the net amount is not legally compliant. If your employer fails to provide a complete itemised payslip, you can file a complaint with an Employment Tribunal at no cost.
Lawful deductions from your wages
Your employer can only deduct money from your wages in limited circumstances. A deduction is lawful only if it is required by law, agreed in your employment contract, or you have given written consent. Unlawful deductions are taken without any of these three justifications and can be challenged.
Statutory deductions (required by law)
Your employer must deduct these automatically; you cannot opt out. They include:
- Income Tax via PAYE (Pay As You Earn), based on your tax code and personal allowance
- National Insurance contributions (which fund the state pension, NHS, and other benefits), calculated on earnings above the Primary Threshold
- Student loan repayments (if you have taken out a government student loan)
Contractual deductions (agreed with your employer)
These are lawful only if they were explicitly written into your employment contract before the deduction is made. They may include:
- Workplace pension contributions (you are automatically enrolled if you meet the age and earnings criteria; minimum employee contribution is 5% of qualifying earnings)
- Repayment of an overpayment (if your employer paid you more than you were entitled to)
- Repayment of training costs, if your contract contains a clear clause allowing this
- Damage to equipment, if your contract makes you liable for reckless or negligent loss
Deductions requiring your written consent
Some deductions are lawful only if you have signed a written agreement to them. Examples include repaying a season ticket loan or agreeing to repay an overpayment in instalments. Surprise deductions without prior written agreement are unlawful.
Special rules for retail workers
If you work in retail (shops, restaurants, or any business involving direct transactions with customers), your employer is limited in how much they can deduct for till shortages or stock deficiencies. These workers have extra legal protection under the Employment Rights Act 1996.
The key rule is that on any single payday, your employer can deduct no more than 10% of your gross pay for till shortages or stock shortfalls, even if multiple shortages are being recovered. This 10% cap applies to each pay period separately.
For example, if you are paid £250 gross per week and there is a till shortage, your employer can deduct a maximum of £25 (10% of £250) in that week. If the shortage is larger, they can spread the deduction over multiple weeks, but they still cannot exceed 10% of gross pay in any single week. Your employer must notify you in writing of the shortage and how they plan to recover it, and they must make the first deduction within 12 months of discovering the shortage.
What your employer cannot deduct
Certain payments are not considered 'wages' for the purpose of deduction rules, and your employer cannot touch them without a separate legal agreement (such as a court order or loan repayment scheme). These include:
- Loans or pay advances (unless you have a separate loan agreement)
- Redundancy payments
- Gratuities or gifts
- Reimbursement of expenses you have paid on the employer's behalf
- Accommodation provided by your employer (subject to specific limited exceptions)
Additionally, no deduction (other than tax and National Insurance) is allowed if it would reduce your pay below the National Minimum Wage for that period.
If you think you have been unlawfully deducted
If your payslip shows a deduction that you do not recognise, or that you believe is unlawful, take action quickly. First, speak to your employer in writing and ask for an explanation. Many errors are genuine mistakes and can be resolved informally.
If your employer cannot justify the deduction or refuses to correct it, you have the right to bring a claim for unlawful deduction of wages to an Employment Tribunal. This right is protected from day one of your employment; there is no minimum service requirement.
Time limits for claims
It is crucial to act within the legal time limit. You must bring a claim for unlawful deduction to the Employment Tribunal within three months minus one day from the date the deduction was made. If there have been multiple deductions, the three-month period runs from the date of the last deduction in the series.
Before you can file a tribunal claim, you must contact ACAS (the Advisory, Conciliation and Arbitration Service) to begin early conciliation. This is a mandatory step and is free. ACAS will try to help you and your employer reach an agreement. The time you spend in early conciliation (up to six weeks, or longer if both sides agree) pauses your three-month deadline, giving you extra time to file if conciliation does not succeed.
What the tribunal can order
If you win your claim, the Employment Tribunal can order your employer to repay the full amount of the unlawful deduction. There is no financial cap on what the tribunal can award. The tribunal can also order the employer to reimburse you for any losses caused by the unlawful deduction.
Checking your payslip: a quick checklist
Every time you receive a payslip, run through these checks:
- Does it show your gross pay? (It must.)
- Are all variable deductions (tax, NI, student loan) listed separately with the amount for each?
- Does it show your net pay?
- If your pay varies by hours, does it show the number of hours you worked?
- Do you recognise all the deductions? If not, ask your employer.
- Does the net amount match what landed in your bank account?
- Is your name on it, and does it cover the correct pay period?
If any of these are missing or wrong, contact your employer in writing and ask for a corrected payslip. Keep copies of all payslips you receive — they are important evidence if you need to prove underpayment or challenge a deduction later.
Keep reading — Employment Basics
Employment contracts and your basic rightsWritten statements, probation, notice periods, and the rights every UK worker has regardless of nationality.
Minimum wage, holiday pay and sick payCurrent National Living Wage rates, the 28-day holiday entitlement, and Statutory Sick Pay — and what to do if you're underpaid.
The 48-hour week, breaks and night workThe Working Time Regulations cap your average week at 48 hours unless you opt out in writing — and guarantee rest breaks and days off.Always verify with official sources before acting on the information above.