Pay and contract issues at work

Pay and contract issues are among the most common problems employees face in the workplace. When wages are withheld, overtime is ignored, or contractual terms are breached, the stress can quickly build up. Financial uncertainty impacts not just your job but also your home life, health, and sense of security.

Employment law in the UK is designed to ensure that employees are treated fairly and paid what they are owed. Employers must honour contracts, pay wages correctly, and ensure staff are not treated unequally. When they fail to do so, employees have the right to take action.

At Marley Solicitors, we specialise in helping employees who are struggling with pay disputes or breaches of contract. Whether you are missing wages, denied holiday pay, or considering an equal pay claim, we can provide clear legal advice to protect your rights.

Unpaid wages and withheld pay

The most basic right an employee has is to be paid for the work they do. Unfortunately, wage disputes are not uncommon. Examples of unpaid or withheld wages include:

• Not being paid for all hours worked
• Repeated delays to wages without a valid reason
• Deductions made from pay without consent or legal basis
• Final pay being withheld after resignation or dismissal

In some cases, employers argue that they are entitled to withhold wages due to performance issues or disciplinary action. However, unless there is a lawful reason stated in the contract or in legislation, withholding wages is classed as an unlawful deduction.

For employees, the financial strain can be immediate. Missing even one payday may mean struggling with rent, bills, or family commitments. This is why the law provides a route for employees to recover the wages they are owed.

Non-payment of overtime or holiday pay

Overtime and holiday pay are frequent flashpoints between employers and employees.

• Overtime – If your contract provides for overtime, or if overtime has become an established workplace practice, you are entitled to be paid for those hours. Employers who refuse to pay, or who apply inconsistent rules, may be breaching contract.
• Holiday pay – Employees in the UK are legally entitled to paid annual leave. Holiday pay should not just reflect basic wages but also take into account overtime, regular bonuses, or commission where applicable. Employers who strip this back to basic pay during holidays may be acting unlawfully.

Holiday pay disputes often arise when employees discover they are losing income during annual leave, which defeats the purpose of paid time off. Correct calculation of holiday pay is vital, and employers who fail to do so may face legal challenges.

Equal pay claims

Equal pay is a fundamental right. Men and women should receive the same pay for equal work. Despite this, many workplaces still have unexplained pay gaps.

Employees may have grounds for an equal pay claim if they are performing:

• The same work as a colleague of the opposite sex
• Work rated as equivalent through a job evaluation scheme
• Work of equal value in terms of responsibility, skill, or effort

A typical example is a woman discovering that her male colleague, with the same job title and responsibilities, earns more than she does. Another example could be where different roles exist, but they are of equal value, such as clerical staff and warehouse workers who contribute equally in skill and effort.

Employers can only justify pay differences if they are based on legitimate, non-discriminatory reasons. These might include seniority, geographical location, or performance-related bonuses. However, many excuses given by employers do not hold up under legal scrutiny.

Equal pay claims can be complex, requiring detailed comparisons of job roles, salary data, and internal pay policies. Legal advice is crucial for navigating these cases effectively.

Breach of employment contract terms

An employment contract is a legally binding agreement that sets out the rights and obligations of both employer and employee. Breaches of contract are serious because they undermine the trust at the heart of the working relationship.

Common breaches by employers include:

• Failing to pay wages on time or in full
• Withholding agreed bonuses or benefits
• Changing hours, duties, or location without consultation
• Ignoring grievance or disciplinary procedures stated in the contract

Some breaches may be minor or one-off errors. Others are so serious that they entitle the employee to resign and claim constructive dismissal. For example, if an employer repeatedly fails to pay wages or unilaterally reduces pay, an employee may reasonably feel forced to leave.

What employees should do if they face pay or contract issues

If you are experiencing problems, it is important to act quickly and strategically. The following steps can help:

1. Review your contract and payslips – check what you are entitled to and compare it with what you have actually received.
2. Keep evidence – save payslips, contracts, emails, and notes of meetings. A clear paper trail strengthens your case.
3. Raise concerns informally – sometimes pay errors are administrative. Speaking to HR or a manager may resolve the issue.
4. Submit a formal grievance – if informal attempts fail, use your employer’s grievance procedure to make a formal complaint.
5. Seek legal advice – if your employer still fails to resolve the matter, professional guidance is vital to assess your options and prepare a claim.

Employer responsibilities

Employers must pay staff correctly, provide payslips, and honour contractual agreements. They also have a legal duty to ensure equal pay for equal work. Ignoring these responsibilities not only harms staff morale but also exposes the company to claims and reputational damage.

Good employers will:

• Provide written contracts from the start of employment
• Maintain transparent payroll systems
• Ensure overtime and holiday pay are calculated fairly
• Regularly review pay structures to identify disparities
• Handle disputes in a fair and timely manner

Employers who do not meet these standards may face tribunal claims and financial penalties.

Why legal advice matters

Disputes over pay and contracts can be stressful and complex. Many employees are unsure of their rights or fear repercussions if they challenge their employer. Employment law also has strict time limits for bringing claims, meaning delays can harm your case.

With professional advice, you can:

• Understand your legal rights clearly
• Avoid common mistakes in the grievance process
• Gather the right evidence for your claim
• Negotiate with your employer from a position of strength
• Take your case to a tribunal if necessary

At Marley Solicitors, we understand the pressure employees face when pay or contract issues arise. Our team provides practical, straightforward advice so you can make informed decisions and protect your financial security.

Speak to Marley Solicitors today

No employee should be left unpaid, denied holiday pay, or trapped in an unfair contract. If you are facing wage disputes, equal pay issues, or breaches of contract, Marley Solicitors can help you take the next steps.

We listen carefully to your situation, explain your options clearly, and represent your interests with professionalism. Whether your case can be resolved through negotiation or requires a tribunal claim, our team is committed to securing the fair treatment you deserve.

Contact Marley Solicitors today to discuss your situation in confidence and find out how we can support you.