Understanding Unpaid Wages
Unpaid wages occur when your employer fails to pay you the full amount you are legally entitled to for work you have done. This includes not only your regular salary or hourly pay, but also other types of payments such as overtime, bonuses, commission, holiday pay, and statutory payments like sick pay or maternity pay. If any of these payments are missing, delayed, or incomplete, they may be classed as unpaid wages.
Common reasons for unpaid or delayed wages can include payroll errors, cash flow problems within the company, disputes about hours worked, or even deliberate withholding of pay. Sometimes, employers may claim there was a mistake, but regardless of the reason, you have a legal right to receive the correct payment on time.
It’s important to understand how unpaid wages differ from other issues. For example, a pay cut is when your employer reduces your agreed rate of pay, usually after giving you notice or following a consultation. Unpaid wages, on the other hand, mean your employer has not paid you what you are already owed under your contract or by law. Similarly, backdated pay refers to money owed to you because of a change in pay that should have taken effect earlier, such as a pay rise that was delayed in being processed. While backdated pay can sometimes overlap with unpaid wages, the causes and solutions may be different.
Knowing your rights is essential. Under the Employment Rights Act 1996, you are entitled to receive at least the National Minimum Wage or National Living Wage for all hours worked, and your employer must pay you on the date agreed in your contract. If you are not paid on time, or the amount is less than you are owed, you have the right to take action to recover your wages.
Understanding the rules around unpaid wages is a key part of your Payment Rights as an employee. If you think you are missing pay, it’s important to check your payslips, employment contract, and any relevant communications from your employer. Keeping clear records will help if you need to raise the issue formally or seek legal advice.
How to Check If You Are Owed Unpaid Wages
When you suspect you haven’t been paid correctly, it’s important to check carefully before taking further steps. Here’s how you can work out if you’re owed unpaid wages:
Start by gathering your recent payslips and pay statements. By law, most employees in the UK are entitled to an itemised payslip each time they’re paid (as set out in the Employment Rights Act 1996). Your payslip should clearly show:
Your gross pay (before deductions)
Deductions (such as tax, National Insurance, and pension contributions)
Net pay (the amount you actually receive)
The period covered by the payment
Any additional payments (like overtime, bonuses, or holiday pay)
Compare the figures on your payslip with what you actually received in your bank account. Look for any unexplained deductions or missing payments.
Check that your payslip includes all the hours you worked, including overtime, and any additional payments you’re entitled to. Make sure:
All hours worked are correctly recorded and paid at the proper rate
Any agreed bonuses, commissions, or allowances are included
Deductions are lawful and clearly explained
If you notice anything you don’t understand, or if something looks wrong, make a note of it. For more detailed guidance on what should appear on your payslip and how to spot errors, visit our page on payslips.
It’s a good idea to keep your own records of the hours you work and the payments you receive. This is especially important if you work shifts, irregular hours, or overtime. Use a diary, spreadsheet, or an app to note:
Dates and hours worked
Any overtime or extra shifts
Payments received and their dates
Having a clear record makes it easier to spot discrepancies and provide evidence if you need to make a claim.
If you find a possible error or missing payment, the first step is usually to speak to your employer or payroll department. It’s best to raise your concerns in writing (such as by email), so you have a record of your enquiry. Ask for:
An explanation of any discrepancies you’ve found
Copies of any missing payslips or pay statements
Clarification on how your pay was calculated
Most payroll mistakes are resolved quickly once brought to your employer’s attention. If you’re not satisfied with their response, or if the issue isn’t resolved, you may need to take further action.
By following these steps—reviewing your payslips, keeping accurate records, and communicating with your employer—you’ll be well prepared to identify and address any unpaid wages.
Steps to Claim Your Unpaid Wages
If you believe your employer has not paid you the wages you are owed, there are clear steps you can take to resolve the issue. Acting promptly is important, as strict time limits apply if you later need to take legal action. Here’s what you should do:
Start by speaking directly with your employer or payroll department. Sometimes, unpaid wages result from administrative errors or misunderstandings that can be sorted out quickly. Clearly explain what you believe you are owed, referring to your payslips, employment contract, or agreed working hours. Keep a record of your conversations and any responses you receive, as this may be useful later.
If the informal approach doesn’t resolve the problem, you should put your complaint in writing. This is known as raising a formal grievance. Set out the details of the unpaid wages, including dates, amounts, and any evidence you have. Request a written response from your employer. Most employers have a grievance procedure—check your staff handbook or employment contract for details.
If your employer does not resolve the matter after your formal complaint, you may need to follow formal employment dispute procedures. This can include mediation or conciliation services, such as those provided by Acas (the Advisory, Conciliation and Arbitration Service). Acas offers free, impartial advice and can help both parties reach an agreement without going to court.
If all else fails, you may need to take legal action to recover your unpaid wages. In most cases, this means making a claim to an employment tribunal. You must usually start your claim within three months (less one day) of the date you should have been paid. Before applying to the tribunal, you must notify Acas and go through the Early Conciliation process.
Employment tribunals can order your employer to pay the money you are owed, plus interest. In some cases, you may also be able to claim for other losses, such as holiday pay or notice pay. If you miss the time limit, your claim may not be considered, so act quickly.
Whichever route you take, it’s essential to gather and organise evidence to support your claim. Useful documents include:
Payslips and bank statements showing missing payments
Your employment contract or written terms of employment
Records of hours worked, including rotas or timesheets
Written communications with your employer about the dispute
Any formal grievance letters and responses
Having clear, organised evidence will strengthen your case, whether you resolve the issue informally or need to present your claim to a tribunal.
By following these steps, you give yourself the best chance of recovering your unpaid wages and protecting your rights as an employee. If you are unsure about the process or need extra support, consider seeking advice from a trade union, Acas, or a legal professional.
Time Limits and Legal Protections
When you are owed unpaid wages, it’s important to understand the time limits for making a claim and the legal protections available to you as an employee in the UK. Acting promptly and knowing your rights can make a significant difference in recovering your earnings.
If you decide to make a claim for unpaid wages, you usually need to act quickly. For most claims, such as unlawful deductions from wages, you must start your claim within three months less one day from the date the unpaid wages were due. This time limit applies if you are bringing your case to an Employment Tribunal.
For example, if your employer fails to pay you on 30 June, you must start your claim by 29 September. If there have been a series of unpaid wage payments (for example, several missed paydays in a row), the time limit usually runs from the date of the last unpaid payment.
If you miss the tribunal deadline, the tribunal may refuse to hear your case unless you can show there were exceptional circumstances that prevented you from claiming in time. If you are seeking unpaid wages through the county court (for example, as a breach of contract claim), you generally have up to six years to bring a claim, but most employees use the quicker tribunal process.
UK employment law, including the Employment Rights Act 1996, protects you from unfair treatment when you claim the wages you are owed. You have the right to:
Receive at least the National Minimum Wage or National Living Wage for your age group
Be paid for all the work you have done, including overtime, holiday pay, and other contractual entitlements
Challenge any unlawful deductions from your pay
It is unlawful for your employer to dismiss you, treat you unfairly, or subject you to any detriment simply because you have asserted your right to be paid. This includes making a complaint, starting tribunal proceedings, or even just raising the issue informally.
If your employer retaliates against you for claiming unpaid wages—for example, by reducing your hours, demoting you, or dismissing you—you may have a claim for victimisation or unfair dismissal. Employees are protected from retaliation under employment law, and such actions by your employer could entitle you to further compensation.
If you believe you have been treated unfairly or dismissed because you asked for your unpaid wages, you should keep a record of what happened, including emails, messages, and any relevant documents. You may be able to bring an additional claim to an Employment Tribunal for unfair treatment or dismissal.
Dealing with unpaid wages can be stressful, but you do not have to face it alone. There are several organisations in the UK that offer free, confidential advice and support on employment rights, including unpaid wages, time limits, and how to make a claim. These services can guide you through the process, help you understand your options, and support you if you need to take further action.
If you are unsure about your rights, the correct time limits, or how to proceed, it is always a good idea to seek advice as soon as possible to protect your position.
Related Topics to Explore
Understanding unpaid wages is just one part of the wider picture when it comes to your rights at work. To help you get a fuller understanding of wage issues, here are some related topics you might find useful:
Backdated Pay: Sometimes, employers owe wages from previous periods due to underpayment or late pay rises. This guide explains when you might be entitled to backdated pay and how to claim it, including situations involving changes to the National Minimum Wage or contractual pay increases.
Fair Wages: Find out what “fair wages” means in UK law, including the principles behind equal pay and how fairness is assessed. This topic also covers what to do if you believe you’re not being paid fairly compared to colleagues.
Final Paycheck: If you’re leaving your job, your employer must pay you everything you’re owed, including outstanding wages, holiday pay, or bonuses. Learn your rights regarding your final paycheck, what should be included, and what to do if your employer doesn’t pay you correctly.
Minimum Wage: The National Minimum Wage and National Living Wage set the legal minimum hourly rates for most workers in the UK. This section explains current rates, who is entitled to them, and how to check if you’re being paid correctly under the law.
Pay Cuts: Employers can only reduce your pay in certain situations and usually need your agreement. Learn the difference between a pay cut and unpaid wages, your legal protections, and what steps to take if your pay is reduced without your consent.
Payslips: Payslips are essential for checking that you’ve been paid correctly. This guide explains your right to receive a payslip, what information it must include by law, and how to use it to spot any errors or missing payments.
Exploring these topics can help you better understand your rights and options if you have concerns about your pay. If you’re unsure about your situation, it’s always a good idea to seek advice or check your payslips and contract for more details.
