Employment Rights Act 1996, section 21

Limit on amount of payments

Part II Protection of wages

(1)Where the employer of a worker in retail employment makes on any pay day one or more demands for payment in accordance with section 20, the amount or aggregate amount required to be paid by the worker in pursuance of the demand or demands shall not exceed—

(a)one-tenth of the gross amount of the wages payable to the worker on that day, or

(b)where one or more deductions falling within section 18(1) are made by the employer from those wages, such amount as represents the balance of that one-tenth after subtracting the amount or aggregate amount of the deduction or deductions.

(2)Once an amount has been required to be paid by means of a demand for payment made in accordance with section 20 on any pay day, that amount shall not be taken into account under subsection (1) as it applies to any subsequent pay day, even though the employer is obliged to make further requests for it to be paid.

(3)Where in any legal proceedings the court finds that the employer of a worker in retail employment is (in accordance with section 15 as it applies apart from section 20(1)) entitled to recover an amount from the worker in respect of a cash shortage or stock deficiency, the court shall, in ordering the payment by the worker to the employer of that amount, make such provision as appears to the court to be necessary to ensure that it is paid by the worker at a rate not exceeding that at which it could be recovered from him by the employer in accordance with this section.

Definitions used in section 21 5

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
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
employment

(5) In this Act “employment”—

(a)in relation to an employee, means (except for the purposes of section 171) employment under a contract of employment, and

(b)in relation to a worker, means employment under his contract;

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
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
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

Cases considering section 21 4

Agard v Westminster Kingsway College

[2011] EWCA Civ 1169 · 20 October 2011

Confirms that an appeal from an Employment Tribunal lies on an error of law, including a finding unsupported by evidence or a perverse finding. The court found no such error and refused permission. (see para [11])

Korashi v Abertawe Bro Morgannwg University Local Health Board

[2011] UKEAT 0424_09_1208 · 12 September 2011Defines

The court referred to the EAT’s jurisdiction as confined to correcting errors of law by the Employment Tribunal, supporting its conclusion that fresh factual evidence should normally be dealt with by review (see para [116]).

Stephen Leighton v Renfrewshire Council

[2026] EAT 95 · 26 June 2026

The judgment applies the restriction that an appeal to the Employment Appeal Tribunal lies only on a question of law, informing its review of the Employment Tribunal’s reasoning and factual conclusions. (see para [13])

What each judgment says about section 21 is in the case-law panel in the full Act.