As a UK employee, you can file an unpaid wages claim with small claims court if your employer refuses to pay wages that you are contractually owed. In most cases, wage disputes are resolved by following the employer’s grievance process and enlisting ACAS (the Advisory, Conciliation and Arbitration Service) as a third-party mediator where necessary. Should mediation fail, you can follow the steps outlined in this article to claim for unpaid wages and use CaseCraftAI’s simple, secure platform to prepare documents, compile evidence, and track your claim as it progresses.
Understanding Wage Theft and Unpaid Wages
It is unlawful for your employer to withhold contracted wages, holiday pay, sick pay, notice pay, overtime pay, or to deduct pay without your written consent. If your employer fails to pay your wages on time or to provide benefits owed to you by contract or law, they are committing wage theft.
Legal Rights and Protections Against Wage Theft
As an employee of a UK company, you are protected against wage theft by UK employment law. According to The Employment Rights Act 1996, your employer is legally required to pay your contracted wages on your agreed payday. They are also legally required to provide written notice before any pay adjustments or deductions are made.
If your employer regularly fails to pay you on time or persistently deducts pay without your consent, you may be legally entitled to further protection against constructive dismissal. Don’t resign before seeking legal advice, even if you think you may have a case for constructive dismissal, as this may make it harder to claim unpaid wages.
Filing a Wage Claim for Unpaid Wages
There are specific steps to follow when filing an unpaid wages claim against a UK company:
Step 1: Check your contract along with your payslip and see if your estimated payment is correct.
Don’t forget about deductions like income tax, pension contributions, childcare vouchers or insurance payments. Also, ensure that all timesheets submitted correspond to the hours that you have worked.
Step 2: Collect your documents
Gather all the wage slips, timesheets, and bank statements. You may need to ask for an itemised payslip. The documents need to show what you are entitled to receive under the contract and what you have received, in particular, the difference.
Step 3: Discuss the issues with your employer
If it is necessary, informally discuss the matter and try to solve it at this level. When each side has provided their facts, they should answer within the timeframe you have requested (e.g. a week). All steps taken should be documented. If there is no resolution, follow your employer’s grievance procedures. After this stage, notify ACAS for pre-tribunal mediation services.
Step 4: Notify ACAS for Early Conciliation (if Employment Tribunal is possible)
You have to fill out an ACAS Early Conciliation Notification form.
Step 5: Think about starting legal proceedings
As long as you are still employed, or if the window for sending the claim to an Employment Tribunal is open (which is three months minus one day from the deduction), then you can submit a claim to the tribunal.
If the time limit for filing a claim has passed or your employment has ended, you can file a breach of contract claim in the County Court (Small Claims Court if the claim is less than £10,000).
CaseCraft AI could assist you in preparing documents and evidence to file a Small Claims Court claim under these conditions.
Note Step 6: Take action if your employer does not pay.
In all cases where the employer has been assessed (by tribunal or civil court) as owing payment, the following enforcement action can be taken:
Following an Employment Tribunal award: Application to the County Court or High Court will be needed for enforcement.
Followed by enforcement from the Small Claims Court judgment: Subsequent enforcement may require the use of a County Court Bailiff or High Court Enforcement Officer, depending on the amount.
How To Claim Unpaid Wages as a Self-Employed Worker
If you are wondering how to claim unpaid wages self-employed, it is essential to note that while freelancers and contractors are legally entitled to seek restitution for unpaid wages, they cannot do so via employment tribunal. If you are self-employed and need to make a claim, you can appeal to the County Court in England and Wales or Sheriff Court in Scotland. With CaseCraft AI, everything is easier. Our platform assists freelance employees in preparing and filing small claims by guiding you through evidence compilation, claim document drafting, and case tracking until resolution.
Legal Recourse for Unpaid Wages
As a UK employee, you have legal recourse to seek compensation for unpaid wages. UK employment law protects you from unlawful wage deductions. Following the steps outlined above is the best way to raise a claim.
FAQs in Relation to How to File an Unpaid Wages Claim
My Employer Hasn’t Paid Me This Month – What Do I Do?
If your pay is late, you should address your concerns with your employer and try to resolve the matter amicably. If your wages remain unpaid following negotiations, your next step is to seek conciliation support from ACAS.
What Do I Do If My Employer Keeps Underpaying Me?
If your employer routinely misses payments or underpays you, they could be in breach of contract. Seek advice from an attorney to ascertain whether you have a case for constructive dismissal – it is important not to resign from your job before receiving legal advice on the matter.
How Quickly Should My Employer Pay Unpaid Wages?
Your employer should pay back any wage shortfall as soon as you make them aware of the issue, ideally before the next payroll processing date.
Which Pay Deductions Is My Employer Legally Allowed To Make?
Your employer can legally deduct income tax and national insurance contributions from your take-home pay. They may also offer non-cash benefits that require a salary sacrifice, such as pension contributions, childcare vouchers or gym memberships. Additional deductions, such as specific training costs and uniform allowances, may be considered reasonable depending on the terms of your employment contract. Any deduction must be agreed in advance and referenced in your contract.
How Do I Claim Unpaid Wages via Employment Tribunal?
Prior to filing a claim for unpaid wages in the UK, employees need to try to resolve the matter internally without escalating it and with the provision of documentation concerning missed or late wage payment as well as including a response deadline. If no resolution is reached, employees can contact ACAS, a conciliation service, for assistance. If the conciliatory efforts did not work out, matters can be initiated through the Employment Tribunal (please note that CaseCraft AI does not assist with tribunal submissions). CaseCraft AI helps with claims in the Small Claims Court if the tribunal deadlines have lapsed or if the claim pertains to a contract breach after the employment has ceased.
How Much Does It Cost to Issue Proceedings Against My Employer?
When filing a claim through the Employment Tribunal, there is no fee associated with initiating the proceedings. However, should you claim through the Small Claims Court for issues regarding breach of contract or unpaid wages after employment termination, court fees will be applicable.
How Long Do I Have to Issue Proceedings for Unpaid Wages?
There are strict time limits when going to small claims court for unpaid wages:
- 1 wrong deduction/missed payment – you have three months minus 1 day from the day your wage payment was incorrect or late to issue proceedings.
- Several wrong deductions/missed payments – you have 3 months minus 1 day from the date of the most recent missed wage payment or unlawful deduction to issue proceedings. You can backdate your claims for up to 2 years if there is less than 3 months minus 1 day between each unlawful deduction or missed wage payment.
- If Employment Tribunal time limits have passed, you may still be able to claim unpaid wages via the Small Claims Court for breach of contract — the deadline for this is up to six years after the wages went unpaid.
I’ve Been Made Redundant; How Do I File an Unpaid Wages Claim?
If you’ve been made redundant by your employer and they are withholding any redundancy pay to which you are legally entitled, follow the same process of seeking an amicable resolution before enlisting the help of ACAS and then issuing proceedings.
What Do I Do if My Employer Is No Longer Trading (Has Gone Insolvent)?
If your employer has gone insolvent and you need to raise a claim, you must prove that you were an employee by providing evidence of a contract, payslips and timesheets. You will be classed as a preferential creditor and can claim from the Government’s National Insurance Fund if there is a shortfall in pay. Seeking assistance from an attorney is the best way to get support when your employer has gone out of business.
What Do I Do if I’ve Run Out of Time to Issue Proceedings?
If you have run out of time to issue proceedings and can no longer make a claim via employment tribunal, you can still file a Civil Court claim for breach of contract up to six years after your wages went unpaid.
Getting Help for an Unpaid Wage From an Attorney
An attorney can help you successfully file and win a claim for unpaid wages.
This is particularly useful if ACAS conciliation has not worked, and you have to issue proceedings or your employer is ignoring a judgment and you have to take the case to civil court.
Those who are self-employed, trying to claim back unpaid wages will especially appreciate the help of an attorney. If an agreeable solution is not reached, they will have to go through the county court and this can be quite difficult and very time consuming.
Designed specifically to help in overcoming such barriers, CaseCraft AI provides guidance on every step of the claim process, from evidence compilation to managing one’s Small Claims Court case—all achievable without advanced legal expertise.
