No Pay on Pay Day!

Payday should be straightforward: your wages go into your bank account on the agreed date. But what happens if you check your account and find you have not been paid at all, or have only received a part-payment? Understandably, this situation can cause panic and confusion.

1. Check for Banking Errors

Before jumping to conclusions, the first step is to confirm whether the issue lies with a banking error or if your employer has genuinely failed to pay your wages. For a banking error, you should contact your bank immediately to clarify the situation. If the bank confirms it has not received funds from your employer, you will need to speak to your employer as soon as possible.

2. Establish if Your Employer Has Failed to Pay You

If it turns out that your employer has not sent payment, you need to understand your legal position. A failure to pay wages may amount to:

• Unlawful Deduction from Wages under Section 13 of the Employment Rights Act 1996
• Breach of Contract (if your employment contract specifies the date and amount of wages to be paid)
• Fundamental Breach of Contract (in serious cases, you may be able to resign and claim constructive dismissal under Section 95(1)(c) of the Employment Rights Act 1996). However, you should always seek legal advice before deciding to resign.

3. Speak to Your Employer Immediately

As soon as you realise the problem, contact your employer:

1. Ask for an Explanation – Find out whether the issue is a simple administrative mistake.
2. Request Prompt Payment – If your employer acknowledges a mistake, request immediate payment of the missing wages.

4. Raise a Formal Grievance if Necessary

If an informal discussion does not resolve the issue, you should raise a grievance:

• Check your Employer’s Grievance Procedure – Follow it carefully and keep a written record of any correspondence.
• Use the ACAS Code of Practice – If your employer does not have a procedure, refer to the ACAS Code of Practice on Disciplinary and Grievance Procedures:
  ACAS Code of Practice

5. Know Your Time Limits

You generally have 3 months (minus one day) from the date of the breach (when the wages were not paid) to bring an unlawful deduction from wages claim in the Employment Tribunal. If you miss this deadline, you could lose your right to pursue the claim.

6. Seek Early Conciliation via ACAS

If the grievance and any subsequent appeal do not resolve your pay problem, your next step is to contact the ACAS Early Conciliation Service:
ACAS Early Conciliation

Early Conciliation is a mandatory stage before making a claim to the Employment Tribunal. ACAS will try to help both parties reach an agreement without going to Tribunal.

7. Make a Claim to the Employment Tribunal

If no agreement is reached by the end of the conciliation period, you will need to bring a claim to the Employment Tribunal:
Making a claim

8. Consider Your Employer’s Financial Health

Not being paid could be a sign your employer is experiencing financial difficulties. If your employer is simply refusing to pay, you may enforce any Employment Tribunal award against them. However, if your employer is going out of business or becomes insolvent, different options apply:

1. Employer Stopped Trading
   • Follow the steps above (grievance, Tribunal claim).
   • Enforce the Tribunal award if possible.
2. Employer is Insolvent
   • You might be asked to keep working, be transferred to a new employer, or be made redundant.
   • If you are made redundant, you can apply to the Redundancy Payments Service for:
     • Redundancy pay
     • Unpaid wages, overtime, or commission
     • Holiday pay
     • Statutory notice pay (for the period you would have worked your notice)

For more information, visit The Redundancy Payments Service.

9. Unfair Dismissal and Consultation Rights

Even if you receive the payments you are owed, you may still have claims for unfair dismissal (if you are dismissed in connection with the non-payment or financial difficulties) or failure to consult (if redundancies are being made without proper consultation). Always seek advice if you believe your redundancy process was handled incorrectly.

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Need Further Advice?

If you require assistance recovering unpaid wages or have any employment law queries, our Employment Team at PCB Solicitors can help. We offer an initial case assessment to discuss your options.

• Phone: 01743 248148
• Email: ryan.bickham@pcblaw.co.uk

Remember: taking action quickly is crucial. If in doubt, seek legal advice early to protect your rights.