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Unlawful Deduction From Wages |
If certain payment arrangements have been agreed between parties and the employer subsequently departs from these, which then results in a financial loss to the employee, the employee can claim unlawful deduction of wages.
Typically we find claims for unlawful deduction of wages are brought when:
- there are arguments about bonuses to be paid when an employee leaves their employment
- there is a dispute about the amount of notice pay to be paid
- an employee is dismissed
- and occasionally when an employer has paid an employee the statutory amount for a period of 'lay-off' whilst the employee claims the employer had no right to lay them off
Contrary to popular belief there is no compensation payable if an employee wins an unlawful deduction from wages claim. Monies unlawfully deducted must be paid to the employee, but there is no compensation payment for the inconvenience, injury to feelings etc.
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