Wages, Holiday Pay and Unpaid Money

Missing wages can cause immediate financial pressure. The problem might be an incorrect payslip, unpaid overtime, holiday pay calculated at the wrong rate, money withheld when you leave a job, or a deduction for training, equipment or an alleged shortage.

Your rights depend on what you were owed, your working arrangements, your contract and why the money was withheld. The important first step is to identify the type of payment involved and calculate the amount in dispute.

This guide focuses on employment rights in Great Britain: England, Wales and Scotland. Northern Ireland has a separate employment law and tribunal system, so Northern Ireland-specific guidance may be needed if you work there.

For wider information, see the UK Employment Rights guide.

1. What counts as unpaid wages?

Unpaid wages can include ordinary salary or hourly pay that has not been paid in full, as well as certain other payments due under your employment arrangements. The legal route depends on the nature of the payment and the reason it is missing.

Common examples include:

• Missing salary or hourly pay: you worked the required hours but received less than you were due.
• Unpaid overtime: you believe additional hours should have been paid under your contract or applicable pay arrangements.
• Unpaid commission or bonus: a payment you believe became due under the relevant scheme or agreement has not been made.
• Final wages: your employer has not paid everything due for the period you worked before leaving.
• Holiday pay: you were paid too little for leave or were not paid for accrued statutory holiday when your employment ended.
• Unexpected deductions: your employer withheld money for damage, training, equipment, an alleged overpayment or another reason you dispute.

Not every disagreement about money is legally the same. A claim for wages may be different from a claim for expenses, a loan, pension contributions or redundancy pay. Identify each disputed item separately before deciding what action to take.

2. Can your employer deduct money from your wages?

Under section 13 of the Employment Rights Act 1996, an employer generally cannot make a deduction from wages unless it is required or authorised by law, authorised by a relevant contractual term, or you agreed to it in writing beforehand. Specific statutory exceptions also apply.

Examples of deductions that may be lawful include income tax and National Insurance, an authorised deduction under your contract, recovery of a genuine wage overpayment, or a deduction you agreed to in writing before it was made. The exact circumstances matter.

A deduction is not automatically lawful simply because an employer says you owe money. Check the contract wording, any written agreement and the explanation given for the deduction.

Common disputed deductions

For retail workers, special rules can limit deductions for till shortages or stock shortfalls to 10% of gross pay in a pay period while the worker remains employed. That limit does not apply to final wages when the worker leaves. Other requirements also apply, so the circumstances should be checked carefully.

There are also rules about the National Minimum Wage. Many deductions must not reduce pay below the applicable minimum wage, although specific exceptions exist. A deduction that is permitted by contract may still raise a separate minimum-wage issue.

Read the official guidance on deductions from pay and Acas guidance on making and checking deductions.

3. Are you being paid the correct holiday pay?

Most workers are entitled to 5.6 weeks of paid statutory holiday each year, subject to the applicable rules. The way holiday pay is calculated depends on your working pattern, how your pay is structured and the type of leave involved.

For workers with regular hours and fixed pay, a week’s holiday will generally be paid at the usual weekly rate. Other arrangements can require an average based on previous paid weeks. For example, irregular-hours and part-year workers have specific rules for calculating holiday entitlement and pay.

For many workers, the calculation must account for elements of normal pay such as regular overtime and commission. The rules distinguish between the four weeks of statutory leave generally paid at the normal rate and the remaining 1.6 weeks, which may be paid at the basic rate for regular-hours workers. Different rules apply to irregular-hours and part-year workers.

What if your employer pays only your basic rate?

If you regularly receive commission or overtime, check whether those payments should have been included when your holiday pay was calculated. A basic-rate calculation may be correct for some parts of statutory leave but incorrect for others.

Review the holiday period, the pay rate used, your working pattern and the calculation method. Do not assume that every bonus or additional payment must be included; the treatment depends on the type of payment and the applicable rules.

What if you leave with unused holiday?

When your employment ends, your employer must pay you for accrued statutory holiday that you have not taken. This is commonly called holiday pay in lieu.

If you have taken more holiday than you had accrued, your employer may be able to deduct the excess from your final wages where the required contractual term or prior written agreement exists. Check the contract and the calculation rather than assuming the deduction is correct.

For the official rules and examples, read GOV.UK holiday pay guidance and Acas guidance on holidays and final pay.

4. What if your final pay is missing or incorrect?

Your final pay may differ from your usual payslip because you worked only part of a pay period, had untaken holiday, took more holiday than you accrued, had an authorised deduction or were paid notice or other contractual sums.

Normally, you should receive your final wages on your usual payday. Check the final payslip against the hours or days worked, your contractual pay, holiday records, notice arrangements and each deduction.

If your employer says money is being withheld because you did not work your notice, check your contract and the circumstances. An employer does not automatically have the right to keep wages you have already earned merely because there is a disagreement about notice. The position can depend on the contract and the type of claim.

If a final payment is short, request an itemised breakdown explaining what has been paid, what has been withheld and why. Keep a copy of the request and the response.

5. What evidence should you collect?

Good records help you work out whether money is missing and explain the issue clearly to your employer, Acas or an adviser.

• Employment contract and written terms: pay rate, working hours, overtime arrangements, deductions, holiday entitlement and notice provisions.
• Payslips: gross pay, deductions, net pay and any explanation of fixed deductions.
• Bank statements: the amount and date of each payment received.
• Hours and rota records: timesheets, shift schedules, clock-in records and overtime approvals.
• Holiday records: accrued entitlement, leave taken, holiday pay calculations and the leave-year dates.
• Relevant correspondence: emails, messages, payroll tickets, grievance letters and the employer’s explanations.
• Calculation of the shortfall: each payment date, the amount you expected, the amount received and the difference.

Workers generally have a right to an itemised payslip at or before payday. It should show gross wages, deductions and net pay, along with the required hours information where pay varies according to time worked. Fixed deductions can be explained through a separate standing statement in the circumstances permitted by law.

See the official GOV.UK payslip guidance for details of what your payslip should contain.

6. How to challenge unpaid wages or a deduction

Step 1: Calculate the amount in dispute

Identify the pay period and payment concerned. Compare what you believe was due with the amount actually paid. Separate unpaid ordinary wages, holiday pay, overtime and disputed deductions rather than combining everything into one unexplained figure.

Step 2: Check your contract and payslip

Look for the relevant pay term, overtime arrangement, holiday-pay method or deduction clause. If the employer relies on an agreement, ask for a copy and check when it was made.

Step 3: Write to your employer or payroll team

Set out the payment date, the amount you believe is missing, how you calculated it and the documents supporting your position. Ask the employer to correct the payment or explain its calculation in writing. Keep the message professional and retain a copy.

Step 4: Use the grievance procedure if needed

If an informal request does not resolve the issue, consider making a formal grievance under the employer’s procedure. Explain the disputed amount, the reason you believe it is owed and the outcome you want.

Do not assume that an internal grievance or appeal pauses a tribunal deadline. It generally does not.

Step 5: Contact Acas promptly

If the problem remains unresolved, contact Acas for information about your options. Before most employment tribunal claims, you must notify Acas so that early conciliation can be offered, unless an exemption applies. Early conciliation can help the parties try to resolve the dispute without a tribunal hearing.

Check the current Acas employment tribunal time limits before relying on any deadline. If a claim is being considered, do not wait for every internal discussion to finish before checking when you need to act.

7. Employment tribunal time limits: act quickly

Employment tribunal deadlines are strict, and the applicable limit depends on the type of claim and when the problem happened.

Acas states that for most claims about problems occurring before 1 October 2026, the usual time limit is three months minus one day, with some claims having different limits. For most claims concerning problems occurring on or after 1 October 2026, the usual limit is six months minus one day. Specific claims and circumstances can differ.

For pay and wages, the time limit generally runs from the date you were not paid correctly. For a series of deductions, the relevant dates and whether the deductions are linked can affect the analysis. Do not assume that an ongoing dispute automatically extends your deadline or that all older shortfalls can be claimed.

Notifying Acas within the applicable time limit can pause the clock during early conciliation under the relevant rules. The calculation can be technical, especially where there are several deductions or more than one possible legal claim.

Official guidance: Acas time limits and GOV.UK guidance before making a tribunal claim.

8. Common mistakes that can weaken a pay dispute

• Relying on verbal explanations only: confirm the amount and reason for the dispute in writing.
• Failing to calculate the shortfall: show the payment date, amount expected, amount received and difference.
• Assuming every deduction is unlawful: check the contract, prior written agreement and statutory exceptions.
• Assuming basic-rate holiday pay is always correct: the applicable rate can depend on your pay structure and the type of statutory leave.
• Ignoring final-pay calculations: accrued holiday, notice arrangements and authorised deductions can affect the final figure.
• Waiting too long: deadlines may expire while payroll or grievance discussions continue.
• Assuming every payment uses the same legal route: wages, expenses, redundancy pay and contractual payments may be treated differently.

9. Examples of common unpaid-pay problems

Example: overtime is missing

A worker’s payslip does not include several overtime shifts. The worker compares the rota, approved hours and pay terms, then asks payroll for a corrected calculation. The key issue is whether the overtime was payable under the relevant arrangements and how the amount should be calculated.

Example: holiday pay appears too low

A worker who regularly earns commission receives holiday pay based only on basic salary. They ask how the employer calculated the payment and check whether the applicable rules require normal pay to include commission for the leave in question.

Example: money is withheld from final pay

An employer deducts money for a training course after the worker resigns. The worker checks the contract and any written agreement, asks for the calculation and seeks advice about whether the deduction was authorised.

Example: a series of short payments

A worker notices that the same pay calculation has been wrong over several pay periods. They keep every payslip, calculate the cumulative shortfall and check the time limit promptly, rather than assuming that the latest payment makes every earlier shortfall recoverable.

These are illustrative examples, not reports of actual clients or guaranteed outcomes. The result in an individual case depends on the evidence and applicable law.

Frequently asked questions