What Are Unpaid Wages?

When an employee has not received money that they are entitled to, an employer is making an unlawful deduction from wages. An employer is breaking the law when they do not pay an employee the wages which they are owed. There is more information in the Employment Rights Act 1996 (ERA 1996) *1. In the law, ‘wages’ are given a very wide definition, and there are tight controls over any permitted deductions. Section 27 *2 explains wages: You can include any payments due to you in connection with your employment. This means:

• 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

There is no claim for money for redundancy payments, travelling expenses, for making a pension payment, for paying back a loan, or for any other benefits. These may be recovered by some other method, and you need affordable legal services, because you are already dealing with financial issues. But the rules about an unlawful deduction from wages do not apply.

What Counts as Wages?

• Contractual payments: your wages will consist of this plus any fees, bonus, commission or holiday pay that you earn. 
• Statutory payments: it is your legal right to receive a variety of payments as part of your wages, includingSSP(Statutory Sick Pay)SSP (Statutory Sick Pay), SPP (Statutory Maternity/Paternity/Adoption Pay)SPP (Statutory Maternity/Paternity/Adoption Pay)and payments if you are laid off (guarantee payments)SPP (Statutory Maternity/Paternity/Adoption Pay). 
• Other contractual benefits: this also covers any additional payments you may be due under the terms of your contract of employment.

Accrued Holiday During Sickness

When you’re on long-term sick, your statutory holiday entitlement will still be accruing. However, this only really applies where a company is only providing the bare minimum of 28 days annual leave a year, where they give more than that, it’s still an employer underpayment if the extra is affected by the sickness but entitlement doesn’t go below the legal entitlement.

What to Do First: Talk to Your Employer

Before talking to a legal solicitor, speak to them directly and raise the issue verbally. Payroll issues do occur from time to time, and a quick email or word with the relevant team could solve everything in minutes.

Write a letter of complaint. If you're still employed, you should put your concerns in writing. An email outlining what you are owed, which dates it relates to, and when you believe the payment should have been made is an excellent starting point to demonstrate you have sought resolution, and allows your employer an opportunity to put the matter right.  Launch a grievance procedure. If raising a direct complaint fails, you should formalise it via a grievance.

Your employer is required by law to look into the grievance and reply to you in writing, according to their procedure. Keep all records of communication.

When Can You Make an Unpaid Wages Claim?

You're eligible to make an unpaid wages claim if your employer has failed to pay you any of your earnings. This includes cases where you have not been paid for your holiday entitlement, sickness pay or have not been paid on time. If the employer you worked for has become insolvent, you may be able to apply for unpaid wages from before this point. All these things can disturb your family too. You and your family may consult with a family solicitor for a better solution regarding your problem.

What Evidence Do You Need to Make an Unpaid Wages Claim?

If you're looking to make a claim for unpaid wages in the UK, you'll have to provide evidence that you were employed, the hours you worked, and how much you're owed. Here's a breakdown of the most important types of evidence you can gather:

• Employment Contract: This is vital for showing the pay rate you were promised and the hours you were expected to work.
• Payslips: This will demonstrate what you've been paid in comparison to what you were actually due to be paid.
• Time & Attendance Records: Whether it's a timesheet, rota, or a clocking-in system, this proves the number of hours you actually worked.
• Bank Statements: This can be used to show that payment hasn't been received at all, or that payments have been short.
• Written Correspondence: Emails, text messages, and other written communication in which you've requested your wages, and your employer's reply.

Understanding how solicitor fees family law are charged is far simpler than it appears once someone explains it properly. 

Step-by-step Guide to Recovering Your Unpaid Wages

Step 1: Gather Your Evidence

Documentation makes your case much more powerful: 

• A written contract of employment or letter of engagement.
• Payslips (that detail any deductions from your wages, and all previous wages).
• Timesheets, rotas or clocking-in records.
• Emails, texts or letters that mention pay.
• Bank statements showing that you've received payments.
• Hours worked (including any overtime you've done).

Step 2: Informal Resolution (Initial Approach)

Start by speaking directly to your employer:

• Start with a relaxed approach with your manager or Payroll Department. 
• Be clear about the error with specific figures, dates and calculations. 
• Give them about 1 to 2 weeks to investigate. 
• Follow up in writing if the problem has not been solved.

Many disputes are resolved at this stage without formal proceedings.

Step 3: Formal Written Grievance

If none of the informal methods is fruitful, you can raise a formal complaint.

First, you'll want to follow your employer's grievance process. The specific details are typically outlined in your employee contract or handbook. You'll need to formally lodge your complaint, ideally in writing with supporting documentation, and ask for a grievance meeting to review your complaint. Your employer has a reasonable period in which to reply.

Employers should generally follow the ACAS Code of Practice on Disciplinary and Grievance Procedures (ACAS, 2024), which sets the baseline.

Step 4: Early Conciliation via ACAS

The very first thing you need to do is tell ACAS (Advisory, Conciliation and Arbitration Service):

• Before you can take most employment cases to tribunal, you'll need to contact ACAS *3 for Early Conciliation. 
• You need to do this within three months, less a day, of the wages being unpaid. 
• An ACAS conciliator will get in touch with both sides in a bid to find a resolution.
• The service is free, and most claims are settled at this stage without needing to go to tribunal.
• If conciliation doesn't work, you will get a certificate so that you can then start proceedings.

Step 5: Employment Tribunal Claim

And if all else fails, you can take your employer to an employment tribunal. Here are the basic points of making a claim:

• Time limit: Typically three months minus a day from the date your wages were due.
• Types of claims: If your wages have been unlawfully deducted, or if your contract hasn't been followed, or if you haven't been paid the National Minimum Wage, you might have grounds for a claim.
• No Fee: You can bring a claim to an employment tribunal without paying any fees (currently).
• Limit on pay: If your claim is related to unpaid wages, the maximum award you can receive is usually £25,000.
• Legal representation: You don't have to have a solicitor represent you. You can bring the claim yourself, but it's often a good idea to seek legal advice from an employment solicitors for better and faster results.

It appears that claims for illegal deduction are still one of the most frequently filed employment claims, with data from the Ministry of Justice tribunals suggesting it's a regular feature. If your unpaid wages are linked to losing your job, you may also have grounds for an unfair dismissal claim. Read our guide on Unfair Dismissal to understand your legal rights and the steps you can take. 

What If Your Employer Is Insolvent?

Your employer could be insolvent. This may mean they have been placed into liquidation, administration or otherwise cannot afford to pay you. If this happens, you may be able to reclaim certain amounts from the Redundancy Payments Service, including arrears of pay (max 8 weeks), holiday pay (max 6 weeks), notice pay and redundancy pay up to the statutory weekly pay cap (currently £719). Many regional firms of employment solicitors can provide a comparable level of service more affordably.

How Can You Choose the Best Legal Service Provider for My Claim?

If you intend to file an unpaid wages claim, you will need to find an attorney near you that has experience representing employees in this area of employment law. In addition, you may want to research a law firm's reputation, such as Foster Legal Solicitors and billing practices.

Frequently Asked Questions