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Pay disputes - salary dispute with employer
Occasionally your employer may fail to pay money that is owed to you. This could include unlawful deductions to your wages or the failure to pay holiday pay or bonuses. There is a three month less one day time limit in which to make a claim for a wage dispute and so it is key that you act as quickly as possible.
If you believe that you have grounds for a claim against your employer and are owed £3,000 or more by them, we recommend completing our online enquiry form - by completing the form as fully as possible, it will allow us to assess your case much more efficiently to tell you whether we can assist and what funding option we can recommend.
Understanding salary disputes
A salary dispute with your employer can arise from a range of situations, not just limited to unpaid wages. It might involve discrepancies in your payslip, underpayment relative to your contract, delays in payment, or even differing interpretations of commission structures. These types of disputes can cause financial strain and stress for employees, making it vital to address the issue quickly and effectively.
If your employer consistently pays you late or does not pay the full amount you are contractually entitled to, this may be grounds for a claim. Disputes may emerge over base pay, overtime, commission, or variable bonuses — particularly if these are based on performance metrics or targets that are unfairly assessed or manipulated.
When facing a salary dispute with your employer, documenting every instance of communication, payments received, and discrepancies is essential. Keeping accurate records of payslips, timesheets, contracts, and bonus agreements can provide you with solid evidence to support your claim.
Your rights in pay disputes
Under UK employment law, all workers have the right to be paid in full and on time according to the terms agreed in their employment contract. Any failure to meet this requirement may constitute an unlawful deduction from wages. You have the legal right to challenge this, whether it's one missed payment or recurring shortfalls.
It’s important to understand that you are protected even if the deduction appears to be minor. The Employment Rights Act 1996 clearly outlines that any unauthorised deductions, regardless of amount, are illegal unless explicitly authorised by the employee in writing or permitted by statute or the employment contract.
If you are involved in a salary dispute with your employer, you are advised to act quickly. Employment tribunals impose strict time limits, and claims must typically be submitted within three months (less one day) from the date of the incident in question.
Why choose Stephensons for pay disputes?
Choosing the right legal team to handle your salary dispute with your employer can make all the difference in achieving a satisfactory outcome. At Stephensons, our skilled employment law solicitors have decades of experience helping employees across the UK recover wages they are rightfully owed.
Here are just a few reasons why clients consistently choose Stephensons:
- Legal expertise: Our employment team includes lawyers recognised by The Legal 500 and Chambers & Partners for their excellence in employment law.
- Highly accredited: Stephensons has been awarded the Lexcel accreditation by the Law Society for excellence in legal practice management and client care.
- Tailored support: Whether your dispute involves unpaid commission, withheld bonuses, or salary miscalculations, we tailor our advice to your specific circumstances.
- Proven success: We have successfully represented thousands of clients in employment tribunals and negotiated settlements that recovered significant sums in unpaid wages and compensation.
- Transparent costs: Our pricing structure is clear with no hidden fees, and for qualifying cases, we may be able to offer fixed-fee services or other funding options.
Our team understands the emotional and financial burden that pay disputes bring. That's why we strive to resolve matters quickly and efficiently — often without the need for lengthy tribunal proceedings.
Common scenarios of salary disputes
Salary disputes can occur in many different forms. Some of the most common scenarios include:
- Being paid less than the National Minimum Wage
- Disputes over performance-related pay or discretionary bonuses
- Incorrect tax deductions or pension contributions
- Non-payment of overtime or additional hours worked
- Changes to pay structures without consultation or agreement
If you find yourself in one of these situations, it’s important to understand that you are not alone. Seeking early legal advice can help you to assert your rights and challenge any unfair treatment from your employer.
Contact Stephensons today
If you're dealing with a pay dispute or salary dispute with your employer, you don’t have to face it alone. At Stephensons, we offer practical legal guidance combined with compassionate support to help you navigate your claim with confidence. We recommend completing our online enquiry form - by completing the form as fully as possible, it will allow us to assess your case much more efficiently to tell you whether we can assist and what funding option we can recommend.
Failure to pay holiday pay
All workers are entitled to 5.6 weeks’ worth of leave per year and the amount of statutory annual leave that you are entitled to is determined by the number of days you work per week. For example, if you only work one day per week you will be entitled to take 5.6 days of annual leave over the year. It is at your employer’s discretion whether they include bank holidays as part of your entitlement or if they award you more annual leave than they are legally obliged to.
Holiday pay should be paid at the same amount that you are paid when you are not on holiday. For example, if you are paid £300 per week and you take a one week holiday you should still be paid £300 for that week. If you work irregular hours the amount you will be paid will be based on the mean average amount that you earned in the 12 weeks leading up to your period of leave.
If you are self-employed you won’t be entitled to statutory holiday pay. In some situations you may be told that you are self-employed when that is not the case. You can use the government’s website to determine your employment status and find out more about your employment rights.
Making a claim for an unpaid bonus
Bonuses are usually dependent on performance and paid at the discretion of your employer. However, they are sometimes contractual and your entitlement to a bonus should be clearly written into your contract of employment if this is the case. If it is not written into your contract but a bonus has previously been paid on the basis of custom and practice you may still be able to make a claim for non-payment.
To make a claim for an unlawful deduction from wages you must make a claim for a specific amount of money. If you do not know the exact amount that you should have been paid your claim will not be classed as unlawful deduction and you will need to make a claim for a breach of contract instead.
Resolving a wage dispute
The first step in trying to resolve a dispute with your employer over their failure to pay money owed to you should be by speaking to them directly. Explain to them that you are aware of your rights as an employee and why you believe that you have not been paid the correct amount.
If you are unable to resolve the issue by talking to your employer about the issue then you should raise a grievance by following your workplace’s grievance process. Include copies of evidence of the failure to be paid correctly such as your contract, and evidence of the payment of bonuses in the past if claiming for the failure to be paid a bonus. If this also doesn’t work to resolve the dispute you should then consider taking your employer to a tribunal. Before you start with the employment tribunal process you will need to contact ACAS who will also see if your dispute can be resolved without need for tribunal through early conciliation.
Employment tribunals should be used as a last resort and it is important that you are aware of the how stressful and costly they can become. If you are owed £3,000 or more by your employer speak to a member of our employment law team on 01616 966 229. Our employment law specialists can advise you on the best route to take to resolve the dispute as quickly as possible and recover the money that you are owed.
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