Employment Rights Act 1996, section 13

Right not to suffer unauthorised deductions

Part II Protection of wages

(1)An employer shall not make a deduction from wages of a worker employed by him unless—

(a)the deduction is required or authorised to be made by virtue of a statutory provision or a relevant provision of the worker’s contract, or

(b)the worker has previously signified in writing his agreement or consent to the making of the deduction.

(2) In this section “relevant provision”, in relation to a worker’s contract, means a provision of the contract comprised—

(a)in one or more written terms of the contract of which the employer has given the worker a copy on an occasion prior to the employer making the deduction in question, or

(b)in one or more terms of the contract (whether express or implied and, if express, whether oral or in writing) the existence and effect, or combined effect, of which in relation to the worker the employer has notified to the worker in writing on such an occasion.

(3)Where the total amount of wages paid on any occasion by an employer to a worker employed by him is less than the total amount of the wages properly payable by him to the worker on that occasion (after deductions), the amount of the deficiency shall be treated for the purposes of this Part as a deduction made by the employer from the worker’s wages on that occasion.

(4)Subsection (3) does not apply in so far as the deficiency is attributable to an error of any description on the part of the employer affecting the computation by him of the gross amount of the wages properly payable by him to the worker on that occasion.

(5)For the purposes of this section a relevant provision of a worker’s contract having effect by virtue of a variation of the contract does not operate to authorise the making of a deduction on account of any conduct of the worker, or any other event occurring, before the variation took effect.

(6)For the purposes of this section an agreement or consent signified by a worker does not operate to authorise the making of a deduction on account of any conduct of the worker, or any other event occurring, before the agreement or consent was signified.

(7) This section does not affect any other statutory provision by virtue of which a sum payable to a worker by his employer but not constituting “wages” within the meaning of this Part is not to be subject to a deduction at the instance of the employer.

[F95 (8)In relation to deductions from amounts of qualifying tips, gratuities and service charges allocated to workers under Part 2B, subsection (1) applies as if—

(a) in paragraph (a), the words “or a relevant provision of the worker’s contract” were omitted, and

(b)paragraph (b) were omitted.F95]

Definitions used in section 13 7

employer

(4) In this Act “employer”, in relation to an employee or a worker, means the person by whom the employee or worker is (or, where the employment has ceased, was) employed.

Defined in s.230(4) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
wages

(1) In this Part “wages”, in relation to a worker, means any sums payable to the worker in connection with his employment, including—

(a)any fee, bonus, commission, holiday pay or other emolument referable to his employment, whether payable under his contract or otherwise,

(b)statutory sick pay under Part XI of the Social Security Contributions and Benefits Act 1992,

(c)statutory maternity pay under Part XII of that Act,

(ca) statutory paternity pay under Part 12ZA of that Act,

(cb)statutory adoption pay under Part 12ZB of that Act,

(cc)statutory shared parental pay under Part 12ZC of that Act,

(cd)statutory parental bereavement pay under Part 12ZD of that Act,

(ce)statutory neonatal care pay under Part 12ZE of that Act,

(ce)any amount of qualifying tips, gratuities and service charges allocated to the worker under Part 2B of this Act,

(d)a guarantee payment (under section 28 of this Act),

(e)any payment for time off under Part VI of this Act or section 169 of the Trade Union and Labour Relations (Consolidation) Act 1992 (payment for time off for carrying out trade union duties etc.),

(f)remuneration on suspension on medical grounds under section 64 of this Act and remuneration on suspension on maternity grounds under section 68 of this Act,

(fa)remuneration on ending the supply of an agency worker on maternity grounds under section 68C of this Act.

(g)any sum payable in pursuance of an order for reinstatement or re-engagement under section 113 of this Act,

(h)any sum payable in pursuance of an order for the continuation of a contract of employment under section 130 of this Act or section 164 of the Trade Union and Labour Relations (Consolidation) Act 1992, and

Defined in s.27(1) · see it in the full Act
worker

(3) In this Act “worker” (except in the phrases “shop worker” and “betting worker”) means an individual who has entered into or works under (or, where the employment has ceased, worked under)—

(a)a contract of employment, or

(b)any other contract, whether express or implied and (if it is express) whether oral or in writing, whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not by virtue of the contract that of a client or customer of any profession or business undertaking carried on by the individual;

Defined in s.230(3) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
employed

and “employed” shall be construed accordingly.

Defined in s.230(5) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
statutory provision

“statutory provision” means a provision, whether of a general or a special nature, contained in, or in any document made or issued under, any Act, whether of a general or special nature,

Defined in s.235(1) · see it in the full Act
worker’s contract

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
gross amount

(4) In this Part “gross amount”, in relation to any wages payable to a worker, means the total amount of those wages before deductions of whatever nature.

Defined in s.27(4) · see it in the full Act

Cases considering section 13 105

National Union of Rail, Maritime and Transport Workers and another v Tyne and Wear Passenger Transport Executive T/A Nexus

[2024] UKSC 37 · 13 November 2024Interprets

The unauthorised-deductions jurisdiction required the employment tribunal to determine whether the wages claimed were properly payable. A rectification defence could have been considered in making that determination. (see paras [71]-[75]; [82]-[84]) A shortfall between wages paid and wages properly payable is treated as a deduction. The provision requires determination of disputes necessary to identify the amount properly payable, but does not confer power to order rectification. (see paras [72]-[74])

Her Majesty's Revenue and Customs (Respondents) v Stringer and others (Appellants)

[2009] UKHL 31 · 10 June 2009

The prohibition on unauthorised deductions applies where statutory holiday pay is wages within section 27. Non-payment of the relevant Working Time Regulations payments may therefore be pursued under the section. A deficiency in wages properly payable is treated as a deduction. The House treated the liquidated holiday payments in issue as capable of falling within that deeming provision.

Tyne and Wear Passenger Transport Executive (trading as Nexus) v National Union of Rail, Maritime and Transport Workers & Anor.

[2022] EWCA Civ 1408 · 27 October 2022Defines

Section 13 is identified as the principal operative provision governing unauthorised deductions from wages. (see paras [14]; [17]) Section 13(1) prohibits deductions unless authorised by statute, contract or prior written agreement. The earlier proceedings applied that framework to the alleged shortfall in shift allowance. (see paras [14]; [17]) Cited only. Section 13(3) treats a shortfall below wages properly payable as a deduction. The provision supported the tribunal’s jurisdiction to determine the contractual amount properly payable. (see paras [14]; [17]; [52]; [132]) Cited only.

85 more judgments, and what each says about section 13, are in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Amendments

  1. F95S. 13(8) inserted (31.7.2023 for specified purposes, 1.10.2024 in so far as not already in force) by Employment (Allocation of Tips) Act 2023 (c. 13), ss. 11(a), 14(2); S.I. 2023/876, reg. 3(c); S.I. 2024/829, reg. 3(k)