If an employer has not paid wages you are owed, this is usually an unlawful deduction from wages and you can demand payment in writing and escalate to ACAS Early Conciliation if it is not resolved quickly.
What’s happening
Spot the common patterns
Unpaid wages in UK workplaces usually falls into a few repeat scenarios: a payroll “error” after a change in hours, a new starter not set up in time, overtime not authorised on the system, commission held back until a later date, or a final payslip that never arrives after leaving. Another common pattern is where an employer pays “most” of the wages but withholds a chunk for training, till shortages, uniform, or alleged damage, without a clear written agreement.
In practice, employers often describe it as an admin issue, cashflow issue, or a dispute about performance or timesheets. The outcome usually depends on whether there is a clear paper trail (contract, rota, timesheets, payslips, bank statements) and whether the employer can point to a contractual right to withhold money. Where there is no clear right, it tends to be treated as wages owed rather than a “disagreement”.
Check what is actually missing
Before escalating, it helps to pin down exactly what has not been paid. “Wages” can include basic pay, overtime, holiday pay, statutory payments (like SSP), and some commission/bonus arrangements depending on the contract. Many disputes start because the employer says “you were paid” but the employee is talking about a different element (for example, overtime or holiday pay) or a different pay period.
Know the usual employer responses
Typical responses include: asking for more time, saying payroll has closed, blaming a manager for not approving hours, offering to add it to next month’s wages, or insisting a deduction is allowed because it is “policy”. In UK cases, the fastest resolution often comes from a short written demand that sets out the amount, the pay period, and a deadline, because it forces the employer to treat it as a formal payroll correction rather than an informal complaint.
What the law says (UK)
Under Employment Rights Act 1996, section 13 – right not to suffer unauthorised deductions from wages, an employer must not make deductions or withhold wages unless the deduction is required/authorised by law, authorised by the contract, or the worker has given prior written consent; if wages are unpaid or deducted without a lawful basis, the usual route is to raise it with the employer, then start ACAS Early Conciliation and, if needed, bring an Employment Tribunal claim within the relevant time limits (commonly 3 months less 1 day from the deduction/last in a series), with ACAS acting as the required gateway before a tribunal claim. Source: ACAS.
Steps to fix
Confirm the exact shortfall
Write down the gross and net amount expected and the amount received, then match it to the pay period dates. Check the payslip for deductions and compare it to the contract and any written policies you were given. If there is no payslip, note that too, because missing payslips often sit alongside payroll problems and make it harder for an employer to justify deductions.
Gather simple proof
Collect copies of: the contract or offer letter, the last 3 payslips (or all payslips if new), bank statements showing what was paid, rotas, clock-in records, timesheets, overtime approvals, and any messages about hours worked. If leaving employment, keep the P45 (if issued) and any final pay communication. In most UK disputes, a clean timeline plus two or three key documents is enough to get payroll to correct it.
Ask payroll in writing
Send a short email (or message if email is not available) to payroll or HR, copying your manager, stating: the pay date, the amount missing, what it relates to (basic pay/overtime/holiday/final pay), and what you want (payment by bank transfer). Ask for a written explanation if they say a deduction is being made. Keep the tone factual and avoid arguing about unrelated workplace issues in the same message.
Set a clear deadline
Give a reasonable deadline, usually 7 days for a correction or an immediate same-day transfer if it is a full missed wage payment. If the employer says it will be “next payroll”, ask them to confirm the date and provide an interim payment if the shortfall affects rent, bills, or travel to work. In many UK workplaces, once a deadline is set, the issue is either fixed quickly or it becomes clear the employer is refusing to pay.
Challenge any deduction basis
If the employer claims a deduction is allowed, ask them to point to the exact clause in your contract or the written agreement you signed, and ask for a breakdown. Deductions for things like till shortages, breakages, or uniform often fail when there is no signed agreement or when the employer cannot show how the amount was calculated. If the employer says it is “policy”, ask for the policy document and when it was provided to you.
Use the grievance route
If payroll does not fix it, raise a formal grievance (or formal complaint) following the employer’s procedure. Keep it tight: dates, amounts, what you have asked for, and what response you received. Ask for a written outcome and a payment date. A grievance creates a clear record that the employer was put on notice, which matters if the issue later goes to ACAS and tribunal.
Protect your wider finances
If the missing wages mean rent or essential bills will be missed, contact the relevant creditor early and explain it is a payroll issue with a known date for resolution (if you have one). If benefits are affected because earnings were reported wrongly, the problem can spill into Universal Credit calculations; where that happens, the fastest fix is often to correct the employer’s pay reporting and then challenge the award if needed. If this is part of the problem, see Universal Credit payment wrong for practical next steps.
Start ACAS Early Conciliation
If the employer refuses to pay, keeps delaying, or stops responding, start ACAS Early Conciliation as soon as possible. This is the normal gateway before an Employment Tribunal claim and often prompts a settlement because it signals the dispute is now formal. Keep your calculation and evidence ready, and be clear whether you are claiming a single missed payment or a series of deductions over time.
Consider tribunal timing
Unpaid wages claims are time-sensitive. Where there is a “series of deductions”, the time limit can run from the last deduction in the series, but relying on that can be risky if there are gaps. If you have left the job, do not assume the employer will “sort it later”; final pay disputes often drag on unless a deadline and escalation are set.
What NOT to do
Don’t rely on verbal promises
“It will be in next month” is a common line. Without a written confirmation of the amount and date, it often slips again, especially if managers change or payroll is outsourced.
Don’t accept vague deductions
Agreeing to “some money off” to keep the peace can make it harder to challenge later. If a deduction is proposed, ask for the contractual basis and a breakdown before accepting anything.
Don’t stop turning up without advice
Withholding labour because wages are unpaid can feel justified, but it can create attendance or misconduct issues and distract from the wage claim. If considering refusing work, get tailored advice first and keep the wage dispute documented.
Don’t mix issues in one complaint
Combining unpaid wages with unrelated grievances (bullying, rota disputes, performance) often slows resolution because the employer treats it as a general conflict rather than a payroll correction. Keep the wage demand separate and specific.
Don’t miss the time limit
Waiting for “one more payroll run” is how many UK claims become out of time. If the employer is not fixing it promptly, start ACAS Early Conciliation early and keep an eye on the clock.
What happens if it’s ignored
Cashflow problems escalate fast
In UK cases, unpaid wages quickly turn into rent arrears, missed direct debits, and overdraft charges. Even when the employer later pays, the knock-on costs can be significant and are often not automatically reimbursed unless specifically negotiated or claimed.
Records get harder to retrieve
As weeks pass, rotas are overwritten, managers move on, and payroll systems archive timesheets. The longer it goes on, the more the employer can argue about hours worked or authorisation, especially for overtime and commission.
Employment relationships deteriorate
Where wages are repeatedly late or short, trust breaks down and people often leave. Final pay disputes are common after resignation, particularly where holiday pay is miscalculated or deductions appear for the first time on the last payslip.
It can become a “series” issue
If the same shortfall happens across multiple pay periods, it may become a pattern of deductions. That can strengthen the argument that the employer’s payroll practice is wrong, but it also creates more to calculate and more scope for the employer to dispute details.
When to escalate
Escalate after one missed payday
If a full wage payment is missed, escalation should be immediate: written demand the same day, then formal grievance if not resolved quickly. A complete non-payment is rarely a harmless admin issue once it passes a few days.
Escalate after repeated shortfalls
If wages are consistently short (for example, overtime missing every month), escalate once the pattern is clear rather than repeatedly chasing informally. Provide a table of dates and amounts and ask for a written correction plan.
Escalate if deductions look invented
If deductions appear without warning (training, uniform, “admin fees”, “cash loss”), ask for the contractual clause and written consent immediately. If the employer cannot provide it, treat it as an unauthorised deduction and move to ACAS Early Conciliation.
Escalate if the employer goes quiet
Non-response after a clear written request is a strong sign the employer is not prioritising the issue. Move to a formal grievance and then ACAS rather than sending multiple chasers.
Escalate if you need a paper…
If the employer is large, outsourced payroll is involved, or managers are deflecting responsibility, escalation is often about creating a clean record. If a complaint is being ignored or bounced around internally, the same approach used when a Council ignoring complaint can help: set deadlines, keep everything in writing, and move to the next stage when the deadline passes.
FAQ
Can an employer pay wages late?
Late payment is usually treated the same way as non-payment for that period: wages are owed on the agreed payday, and repeated lateness often indicates payroll or cashflow problems that need formal escalation.
Can an employer deduct money for…
Only if there is a lawful basis, typically a clear contractual term or prior written agreement, and the deduction is applied as set out in that agreement; otherwise it may be an unauthorised deduction.
What if there is no written…
Wages can still be owed based on the agreed rate and the hours worked. Evidence like rotas, texts, bank payments, and witness statements often fills the gap where paperwork is poor.
What if the employer says overtime…
If overtime required approval, the employer may dispute it, but patterns matter: if overtime was routinely worked and previously paid, that history can support the claim that it was accepted.
Can unpaid wages affect Universal Credit?
Yes. If earnings are reported incorrectly or paid in a different assessment period, Universal Credit can be reduced or delayed; correcting payroll reporting and challenging the UC calculation is often needed alongside the wage dispute.
Is ACAS only for employees?
ACAS routes can apply to workers as well as employees for wage deduction disputes, but status can affect other rights; if status is unclear, get advice early and keep the wage claim focused on what was agreed and what was paid.
Before you move on
Save your payslips, bank proof, rotas, and a dated timeline, then send a written demand with a clear deadline and be ready to start ACAS Early Conciliation if it is not met; if you felt pushed to accept “next month” or told there was no time to check the figures, that’s often a sign the process wasn’t handled properly.
Get help with the next step
If the employer is delaying, disputing the amount, or ignoring you, use the contact form at https://ukfixguide.com/contact/ to outline the dates, amounts, and what you have in writing so the next escalation step is clear.
6 thoughts on “EMPLOYER UNPAID WAGES”