What is Backdated Pay?
Backdated pay is money owed to you for work you have already done, but which was not paid correctly or on time. This usually happens when your employer misses a payment, makes a mistake in calculating your wages, or delays your pay for any reason. For example, if your employer accidentally underpays you one month or fails to include a recent pay rise in your wages, you may be entitled to receive backdated pay to cover the shortfall.
Common reasons for backdated pay include:
Missed payments: Sometimes, employers may overlook a payment or fail to process it on time, especially during busy periods or when changing payroll systems.
Incorrect calculations: Mistakes can happen with overtime, holiday pay, bonuses, or statutory payments such as minimum wage or sick pay. If you are paid less than you are legally entitled to, the difference should be paid as backdated pay.
Delayed payments: Occasionally, pay increases or adjustments (such as those from a promotion or a new contract) may be applied late, meaning you receive the correct amount only from a later date. In these cases, the employer should pay the difference for the earlier period.
Understanding your right to claim backdated pay is important. UK law protects employees and workers by ensuring you are paid what you are owed for the work you do. The Employment Rights Act 1996 and the National Minimum Wage Act 1998 set out your rights to receive the correct pay on time. If you think you have not been paid correctly, you can request a written statement from your employer explaining how your pay was calculated. If the issue is not resolved, you have the right to make a formal complaint and, if necessary, take your case to an employment tribunal.
Backdated pay is just one aspect of your overall Payment Rights as an employee or worker in the UK. Knowing your rights can help you ensure you are always paid fairly and on time. If you believe you are owed backdated pay, it is a good idea to keep records of your hours worked, payslips, and any communications with your employer. This will make it easier to resolve any issues and claim the money you are entitled to.
When Can You Be Owed Backdated Pay?
Backdated pay is money you are owed for work you have already done, but which was not paid to you at the correct time or rate. There are several situations where you might be entitled to backdated pay in the UK, and it’s important to know your rights so you can take action if you think you’ve been underpaid.
1. Unpaid Overtime: If you regularly work more hours than your contract states, but haven’t been paid for this extra time, you may be owed backdated pay. Employers must pay for all hours worked, including overtime, at the agreed rate.
2. Missed Wage Increases: Sometimes, employers announce a pay rise but delay updating your pay. If your wage increase should have started from a certain date but was only applied later, you are entitled to the difference for the period it was missed. This also applies to annual pay reviews or promotions that haven’t been reflected in your pay packet promptly.
3. Errors in Pay Calculations: Mistakes can happen in payroll, such as miscalculating your hours, applying the wrong pay rate, or missing out on bonuses. If you spot an error on your payslip, you can ask your employer to correct it and pay you what you’re owed for previous pay periods.
4. Delayed or Missed Bonuses and Commission: Bonuses, commission, or other incentive payments that are contractually due but not paid on time can also be claimed as backdated pay.
5. Changes in Minimum Wage: If a change in the Minimum Wage comes into effect and your employer does not update your pay accordingly, you are entitled to claim backdated pay for any period you were underpaid. This applies whether you are paid hourly or on a salary, and regardless of your age or role.
Backdated pay rights apply to both salaried and hourly workers. Whether you’re paid weekly, monthly, or by the hour, you are entitled to receive the correct pay for all work done. This includes casual, part-time, and agency workers, as well as apprentices.
The right to receive correct pay is protected by law, including the Employment Rights Act 1996 and the National Minimum Wage Act 1998. If your employer fails to pay you correctly, you can raise the issue informally or make a formal complaint. In some cases, you may need to take your claim to an employment tribunal.
Check your payslips regularly for errors or missed payments.
Keep records of hours worked, pay agreements, and any communications about pay changes.
If you notice a problem, raise it with your employer as soon as possible.
There are time limits for making claims, so don’t delay if you think you’re owed backdated pay.
Understanding your rights to backdated pay can help ensure you receive everything you’ve earned. If you have questions about pay rates or changes to wage laws, you may also want to learn more about the Minimum Wage and how it affects your earnings.
Your Legal Rights to Backdated Pay
If you have not been paid correctly for work you have done, UK law gives you the right to claim backdated pay. This means you can ask your employer to pay you any money you are owed, whether it is for unpaid wages, missed overtime, holiday pay, or other lawful entitlements.
Under the Employment Rights Act 1996 and the National Minimum Wage Act 1998, employers are legally required to pay you at least the minimum wage for all the hours you work. They must also pay you on time and in full, according to your contract. If your employer fails to pay you correctly, you have the right to challenge this and claim any outstanding amounts.
It’s important to act quickly if you believe you are owed back pay. For most wage claims, such as unpaid wages or holiday pay, you must usually start your claim within three months (less one day) from the date the payment was due. This deadline applies if you are bringing a claim to an employment tribunal. In some cases, such as claims for unlawful deductions from wages, you may be able to claim for a series of deductions if the most recent one was within the last three months.
If you miss this time limit, you may lose your right to claim, so it’s a good idea to seek advice or take action as soon as you notice an issue.
Your employer must provide you with an itemised payslip each time you are paid. Payslips are essential because they show your earnings, deductions, and the total amount paid. They help you check that you have been paid correctly and can serve as important evidence if you need to claim backdated pay. If you have not been receiving Payslips, you can ask your employer for them, and if necessary, raise a formal complaint.
If you think you are owed backdated pay, start by checking your payslips and employment contract to confirm what you should have received. It can help to keep a record of hours worked, payments received, and any correspondence with your employer. If you discover a shortfall, raise the issue with your employer as soon as possible. If you cannot resolve the matter informally, you may need to make a formal complaint or consider making a claim to an employment tribunal.
Remember, you are protected by law from being treated unfairly or dismissed for asserting your legal right to be paid correctly. If you have concerns or need help understanding your rights, you may wish to seek advice from a legal adviser, trade union, or an advice service such as Acas.
How to Claim Backdated Pay
If you believe you are owed backdated pay, it’s important to take clear and structured steps to resolve the issue. Here’s a detailed guide to help you through the process:
Start by reviewing your recent payslips alongside your employment contract or written statement of terms. Look for discrepancies between what you’ve been paid and what you should have received, including your agreed hourly rate, overtime, bonuses, or holiday pay. Keeping a written record of hours worked, rates agreed, and payments made can help you accurately identify any shortfall.
Once you’ve identified a potential issue, calculate the total amount of backdated pay you believe you’re entitled to. Be as precise as possible—list the dates, the work done, and the amounts missing. For example, if you worked extra hours that weren’t paid or were underpaid for a period, add up the difference for each pay period.
Often, pay mistakes are unintentional and can be resolved quickly by speaking directly with your employer or payroll department. Prepare your evidence and approach the conversation calmly and professionally. Explain the discrepancy, show your calculations, and ask when the missing pay will be corrected.
If the issue isn’t resolved informally, you have the right to raise a formal complaint. Most workplaces have a process for handling such issues, known as grievance procedures. Submit your complaint in writing, clearly stating the details of your claim, the evidence you have, and the outcome you’re seeking. Keep copies of all correspondence for your records.
If your employer still doesn’t resolve the issue, you may need to seek external advice or take formal legal action. You can contact Acas (the Advisory, Conciliation and Arbitration Service) for free, impartial advice and to start early conciliation—a required step before most employment tribunal claims.
If necessary, you can bring a claim to an employment tribunal. Be aware that strict time limits apply: generally, you must make a claim within three months less one day from the date you should have received the pay. Employment tribunals can order employers to pay what is owed, as well as compensation in some cases.
You may also wish to consult a solicitor or a trade union representative for guidance, especially if your case is complex.
Can I claim backdated pay if I’ve left the job? Yes, you can still claim what you’re owed after leaving, but the same time limits apply.
What laws protect me? The Employment Rights Act 1996 and the National Minimum Wage Act 1998 both protect your right to receive correct pay for work done.
Taking prompt, organised action gives you the best chance of recovering any backdated pay you are owed. If you need more information on related issues, such as how to raise a workplace complaint or what to expect from a formal grievance procedure, further guidance is available.
Related Payment Issues to Know About
Backdated pay often goes hand-in-hand with other pay-related concerns in the workplace. Understanding these related issues can help you protect your rights and ensure you receive everything you’re owed. Here’s a closer look at some key topics that frequently overlap with backdated pay:
Fair Wages: It’s important to know whether you’re being paid fairly for your work. UK law requires employers to pay at least the legal minimum, but fair pay can also mean being paid the correct rate for your role, experience, and industry standards. If you suspect you’re being underpaid or not receiving what was promised, see our guide to Fair Wages for more details on your rights and how to address concerns.
Final Paycheck: Leaving a job—whether you resign, are dismissed, or made redundant—means you’re entitled to a Final Paycheck. This should include all outstanding wages, holiday pay, and any backdated amounts owed. Learn what to check for and what to do if your final pay isn’t correct.
Minimum Wage: Every worker in the UK is entitled to at least the National Minimum Wage or National Living Wage, depending on age and employment status. If your pay falls below these legal thresholds, you may be owed backdated pay to make up the difference. Our Minimum Wage page explains how the rules work, how to check your pay, and what action you can take if you’re underpaid.
Pay Cuts: If your employer reduces your pay, they must follow strict legal procedures and consult with you first. Unauthorised or sudden Pay Cuts can lead to disputes and may entitle you to claim backdated pay. Find out your rights and the steps to take if you’re facing a pay reduction.
Payslips: Your payslip is your primary record of earnings, deductions, and adjustments—including any backdated payments. Employers are legally required to provide payslips to most workers. If you’re missing payslips or they contain errors, it can make it harder to track what you’re owed. Discover why Payslips matter and how to use them to resolve pay issues.
Unpaid Wages: Backdated pay is one part of the wider issue of Unpaid Wages. If your employer has missed payments, delayed your wages, or failed to pay for overtime or holiday, you have legal options to recover what you’re owed. Learn about the steps you can take, from raising a grievance to making a formal claim.
By understanding these related payment issues, you’ll be better equipped to spot problems, gather evidence, and take action to secure the pay you deserve. If you’re dealing with more than one of these concerns, exploring each topic can help you build a stronger case and ensure your rights are fully protected.
