Deductions from Wages: Rules for Employers

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About Course

Taking money out of someone’s pay is tightly controlled by law. This course explains when employers can lawfully make deductions, the special 10% limit for retail workers, how deductions interact with the National Minimum Wage, recovering overpayments, and how to avoid unlawful deduction claims.

Tutwoo is an independent learning provider. This course summarises official guidance for Great Britain as at October 2026. It is not legal advice.

What Will You Learn?

  • Know the lawful grounds for a deduction from wages Apply the 10% limit for cash shortages and stock deficiencies in retail Avoid deductions that take pay below the National Minimum Wage Handle overpayments and final pay deductions properly

Course Content

Course Lessons

  • When a deduction is lawful
  • Retail workers and cash shortages
  • Deductions and the National Minimum Wage
  • Overpayments, complaints and good practice

Sources & Further Reading
The official guidance this course is based on.

Final Assessment

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