The following Employment Q&A provides comprehensive and up to date legal information covering:
Under section 13 of the Employment Rights Act 1996 (ERA 1996), an employer cannot make any deductions from the wages of a worker unless:
the deduction is required or authorised to be made by virtue of:
a statutory provision, eg the requirement to make deductions for income tax or National Insurance contributions via Pay As You Earn (PAYE), or
a relevant provision of the worker's contract, eg where the employer provides a loan to the worker and has a contractual right to take money out of the worker’s wages in repayment, or
the worker has previously signified in writing his agreement or consent to the deduction (eg in respect of pension contributions)
Separately, ERA 1996, s 14 sets out certain ‘excepted deductions’ to which ERA 1996, s 13 does not apply (ie where there is no requirement for statutory or contractual authorisation, or the employee’s consent).
See Practice Note: Deductions from wages.
An employer is obliged to make PAYE deductions for income tax and national insurance contributions (NICs) from an emplo
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Statutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For more information, see Practice Note: What is a members' voluntary liquidation (MVL) and where/when is it typically used?Before the members can vote on a
When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the company may want to ensure that relevant creditors quickly enter a standstill agreement to gain some breathing space to consider a restructuring
LiabilityFalse imprisonment consists of the complete deprivation of liberty without a lawful basis. Claims will in practice be made against a public body that exercises detention powers, usually a local police force, the Secretary of State for the Home Department or the Secretary of State for
STOP PRESS: The Corporate Insolvency and Governance Act 2020 contains provisions which, on a temporary basis (presently until 31 December 2020) impose significant limitations on the ability for a creditor to seek a winding-up order against a company. For further reading, see Practice Note: Corporate
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.