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01 overview

Employee Pay Dispute 

Employee pay disputes can range from simple misunderstandings to complex legal challenges involving employment law. Whether it’s unpaid wages, discrepancies in bonus payments, or issues with overtime or holiday pay calculations, each case is unique but can all create significant stress and potentially lead to costly litigation. 

At Lawhive, our network of expert employment lawyers is here to help you deal with employee pay disputes efficiently and affordably. We provide clear, actionable advice tailored to your situation, help you understand your rights, and make informed decisions. 

Contact us today for a free case evaluation from our Legal Assessment Team. You’ll receive a no-obligation quote for the services of a specialist lawyer, so you can start taking proactive steps to resolve your pay issues. 

What should I do if I believe my employer has underpaid me?

If you think your employer has underpaid you, first speak to them and ask for any discrepancies to be put right. Often, pay issues come about because of a misunderstanding or administrative error and can be easily fixed.

If this does not resolve the issue or you’re dissatisfied with their response, contact Acas or seek legal advice. Both can offer guidance based on your situation, help you understand your rights, and outline your options. 

This may include filing a formal grievance following your company’s grievance procedure, early conciliation, or, as a last resort, claiming unpaid wages through an employment tribunal. 

How can I resolve a dispute over holiday pay?

Most workers in the UK are entitled to at least 5.6 weeks of paid holiday per year. This includes part-time employees, who receive pro-rata entitlements.

To resolve a dispute over holiday pay, you should contact your HR department or direct supervisor to discuss the issue. If informal discussions don’t resolve the issue, follow your company’s formal grievance procedure

If internal procedures fail to put your holiday pay dispute to bed, contact Acas. Acas offers an early conciliation service to resolve disputes without going to a tribunal. 

If all other efforts fail, you may consider filing a claim with the employment tribunal. You generally need to file your claim within three months less one day from when the holiday pay issue occurred. 

If you go down this route, consider hiring an employment law solicitor to help you. An experienced solicitor will provide guidance tailored to your situation and help you understand your legal options in a dispute over holiday pay. 

What are my rights if my employer makes unauthorised deductions from my pay?

Under the Employment Rights Act 1996, employers aren't allowed to make deductions from your wages unless it is required or permitted by law, your employment contract or you have given your explicit written consent. 

Unauthorised deductions from holiday pay are also subject to protection and can be challenged

Lawful deductions include: 

  • Deductions for Income tax and National Insurance contributions
  • Deductions made under court orders, such as for child maintenance or debt recovery. 
  • Deductions that you have agreed to in writing, such as union dues or pension contributions.
  • Recovery of overpayments of wages or expenses provided it is done reasonably. 
  • Deductions specified in your employment contract. 

Any deduction that does not fall under the categories above and that you have not explicitly consented to in writing can be considered unauthorised or unlawful. This includes unexpected deductions for damages, shortages, or performance-related penalties not agreed upon in your contract.

What steps should I take if I am not paid the minimum wage?

If you believe you aren’t being paid at least the National Minimum Wage of National Living Wage in the UK, check your pay slips and employment contract to calculate your hourly rate. 

To do this, divide your total pay by the number of hours worked. Ensure you account for all hours worked. 

If you’re not being paid the minimum wage, you can confidentially report your employer to HMRC who can investigate and, if necessary, enforce the payment of any ways owed. You can report online or by calling the Acas helpline. 

How to file a pay dispute with an employment tribunal

Before you file a pay dispute claim with the employment tribunal you should first: 

  1. Try to resolve the issue directly with your employer
  2. Notify Acas and participate in early conciliation

If conciliation is unsuccessful, Acas will issue an early conciliation certificate, which you need to proceed with your tribunal claim. 

To file a claim, you need to fill out and submit the correct form. The form will ask for details about you, your employer, the nature of the dispute, the steps you’ve taken to resolve it, and your Acas early conciliation certificate number. You can submit the form online or by post. 

After you submit your claim, your employer will receive a copy and will have 28 days to respond. 

The tribunal will then set a date for the hearing, where both parties will present their evidence and arguments. You can represent yourself, have a legal representative, or bring a friend or union representative to assist you. After the hearing, the tribunal will consider the evidence and make a decision, which may take a few weeks to be issued in writing.

If you win your case, the tribunal may order your employer to pay the disputed amount, compensation, and potentially other remedies.

What evidence do I need to support my claim in a pay dispute?

When filing a pay dispute with an Employment Tribunal, the strength of your case often hinges on the quality and quantity of evidence you can provide.  Types of evidence to support a pay dispute claim include: 

  • Your original employment contract or any written agreement that outlines your pay, hours of work, and any other relevant terms of employment.
  • Any amendments to your contract or written confirmations of changes in terms. 
  • Copies of all your pay slips covering the period in dispute.
  • Bank statements showing payments received from your employer. 
  • Timesheets and attendance records. 
  • Emails and letters from your employer regarding your pay. 
  • Relevant sections of your employee handbook or company policies. 
  • Records of your holiday entitlements. 
  • Copies of leave requests and approvals. 

Can I claim interest on unpaid wages or compensation for delayed payments?

If your claim for unpaid wages is successful at an Employment Tribunal, you may be entitled to statutory interest on the amount awarded. The statutory interest rate is typically set at 8% per annum, which can be claimed from the date the wages were due until the date of payment or the tribunal's decision.

Interest is calculated from the date each payment was due until it is paid or until the tribunal makes its decision. However, the tribunal has the discretion to award interest and will generally calculate it based on the tribunal’s rules and the specifics of your case. 

For compensation for delayed payments, some contracts include provisions for interest or additional compensation if wages are not paid on time. 

If your contact does, you can claim based on breach of contract. Or, if the delay or non-payment of wages is part of a broader issue such as unfair dismissal or wrongful termination, you may be able to claim additional compensation for financial losses resulting from the employer’s actions.

How do statutory changes affect my pay and how should my employer comply?

Statutory changes in the UK, such as adjustments to the National Minimum Wage, National Living Wage, or employment laws, directly impact your pay and conditions of employment.

Employers should regularly monitor announcements from the government and relevant authorities and update internal policies, employment contracts, and payroll systems to ensure compliance with new rates and calculations.

What protections are in place against retaliatory actions by employers in pay disputes?

Under the Employment Rights Act 1996, dismissing an employee for asserting their statutory rights, such as raising a pay dispute, is automatically considered unfair dismissal. Employees are protected from being terminated simply for claiming what they are legally entitled to.

There’s no minimum length of service required for this protection; even employees with less than two years of service can claim unfair dismissal if it’s related to asserting statutory rights.

Factors influencing the time it takes to resolve a pay dispute include both parties being open to negotiation and settlement and the workload and scheduling availability of the Employment Tribunal. 

Below are general estimated timelines for each step in an employee pay dispute:

StageEstimated Timeline
Internal Resolution1-3 months 
Early Conciliation2-6 weeks 
Filing Tribunal Claim1-2 months 
Case Management and Preliminary Hearings1-3 months 
Preparation and Exchange of Evidence2-4 months 
Final Hearing6-12 months from claim filing
Tribunal Decision and Enforcement4-8 weeks after the hearing

Experienced legal representation can streamline the process, as solicitors can help prepare and present your case.

What costs are involved in bringing a pay dispute to an Employment Tribunal?

Since a Supreme Court ruling in 2017, Employment Tribunal fees have been abolished. This means you do not have to pay a fee to file a claim or to have your case heard by the tribunal.

However, there may be other fees to consider including solicitor’s fees. 

Some solicitors offer services for pay disputes on a no win, no fee basis, where you pay only if you win your case.

Contact our Legal Assessment Team to learn more about how our network of specialist employment lawyers may be able to support your pay dispute claim on a no win, no fee basis. 

Pay disputes with your employer can be daunting, but understanding your rights and the steps involved can empower you to take action. 

At Lawhive, we specialise in providing expert legal support to employees facing pay disputes.

Our innovative platform combines the convenience of technology with the expertise of a regulated law firm, offering you access to top-tier legal advice at a fraction of the cost of traditional law firms.

How can Lawhive help?

  1. Expert legal guidance: Connect with experienced employment law solicitors who can provide tailored advice and representation for your specific pay dispute.
  2. Affordable solutions: Benefit from our transparent and competitive pricing, ensuring professional legal support is accessible without breaking the bank.
  3. Comprehensive support: From initial consultation to tribunal representation, we offers full-spectrum services to handle your case confidently. 

Don’t let pay issues continue to affect your financial stability and peace of mind.

Contact us today for a free case evaluation and receive a no-obligation quote for the services of a specialist lawyer.

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