💷 Employment & Pay Guide
Employment Pay Rights: Know What You're Owed in 2026
Whether you're on minimum wage, a zero-hours contract, or have had money wrongly deducted from your pay, this guide explains your pay rights, what the law guarantees, and exactly what to do if you're being underpaid.
✅ Last verified: July 2026📚 Sources: GOV.UK, ACAS, HMRC, Fair Work Agency🇬🇧 Applies across the UK
⚖ Know Your Rights at a Glance
- National Living Wage (age 21+): £12.71/hour from 6 April 2026 — your employer cannot legally pay you less.
- Statutory Sick Pay: £123.25/week — payable from day one of illness as of 6 April 2026. No waiting days, no earnings threshold.
- Payslip rights: You must receive an itemised payslip from day one of employment.
- Unlawful deductions: Your employer can only deduct from pay if authorised by law, your contract, or your written consent.
- Holiday pay: 5.6 weeks (28 days full-time) is a legal entitlement — it cannot be waived by contract.
- Fair Work Agency: New enforcement body from 7 April 2026 — enforces NMW, holiday pay and SSP.
⏰ Wage deduction claims have a strict time limit
Claims for unlawful deduction from wages must be brought within 3 months less one day of the deduction (changing to 6 months from 1 October 2026). Series of deductions: you can claim up to 2 years back in England, Wales and Scotland.
🆕 Fair Work Agency operational from 7 April 2026
The Fair Work Agency now enforces NMW, holiday pay and SSP underpayments. Penalties for holiday pay underpayment are 200% of the amount owed, capped at £20,000 per individual.
National Minimum Wage rates (April 2026)
| Age group | Rate (from April 2026) |
| 21 and over (National Living Wage) | £12.71/hour |
| 18–20 | £10.85/hour |
| Under 18 | £8.00/hour |
| Apprentice (under 19, or 19+ in first year) | £8.00/hour |
Tips, bonuses and uniform deductions cannot reduce your NMW. If your take-home pay after any deductions falls below NMW, that is an underpayment.
Statutory Sick Pay — day-one right from 6 April 2026
SSP is £123.25/week, paid from day one of sickness (for 4+ consecutive days including non-working days). There are no waiting days and no minimum earnings threshold. Your employer can pay more via contractual sick pay — check your contract.
Holiday pay and mileage
5.6 weeks (28 days full-time) holiday is a legal entitlement. For irregular hours, holiday pay is 12.07% of hours worked. HMRC approved mileage rate for cars from 6 April 2026: 55p per mile for first 10,000 miles, 25p thereafter (increased from 45p — first change since 2011).
Tips (since 1 October 2024)
Employers must pass all tips to workers in full. No deductions except tax. Tips must be paid by end of the following month. A written tips policy is required. The Tipping Act does not apply in Northern Ireland.
1
Check your hourly rate against NMWDivide gross pay by hours worked. If below £12.71/hour (age 21+), you are being underpaid.
2
Request payslips in writingYou're entitled to itemised payslips from day one. Keep copies.
3
Raise it informally firstMany pay errors are genuine mistakes. Speak to HR and note the response.
4
Submit a formal written grievanceIf informal resolution fails, write a grievance letter with dates and amounts. Keep a copy.
5
Report to the Fair Work AgencyFor NMW, holiday pay or SSP: report at gov.uk. They can enforce and apply 200% penalties.
6
Contact ACAS and consider a tribunal claimFor unlawful deduction from wages, contact ACAS for early conciliation. Time limits apply.
Frequently asked questions
My employer pays me a salary — does NMW still apply?
Yes. Divide your weekly pay by actual hours worked. If below NMW, your employer is breaking the law.
Can my employer pay me in cash?
Yes, cash wages are legal as long as the amount meets NMW and you receive a payslip.
I'm on a zero-hours contract — do I get holiday pay?
Yes. For irregular hours, it's 12.07% of hours worked, paid as rolled-up holiday pay (itemised separately).
Can my employer deduct money for a till shortage?
Only if your contract specifically authorises this in advance in writing. Deducting without prior written authority is unlawful.
How far back can I claim unpaid wages?
Up to 2 years for a series of unlawful deductions in England, Wales and Scotland. Individual deductions: 3 months less one day (6 months from October 2026).
Do I have pay rights from day one?
Yes. NMW, payslip rights, and SSP all apply from your first day. No qualifying period.
Can my employer say my salary "includes" holiday pay?
Only if you're an irregular-hours worker and the holiday element is clearly itemised on your payslip. A fixed salary that vaguely "includes" holiday is not compliant.
📞 Free help and support
ACAS: 0300 123 1100 — free pay rights advice
Fair Work Agency: gov.uk — report NMW, holiday pay and SSP violations
HMRC NMW complaints: 0300 123 2671
Citizens Advice: 0800 144 8848
⚠ Important disclaimer: England, Wales, Scotland and Northern Ireland as at July 2026. General legal information only — not legal advice. Verify with ACAS, GOV.UK or Citizens Advice before acting. ukworkrights.co.uk — Not a law firm.