Underpaid? You Don’t Have to Wait till Next Payday

Getting underpaid is never nice; after all, you need the money to live. Waiting for your money is frustrating at best. At worst, you may not be able to pay your bills. Can your employer really make you wait till the next payday if they underpaid you?

You should not wait until the next payday to get your missing money if you have been underpaid. However, before you speak to your employer, double-check your payslip.

What to Do if You Have Been Underpaid

1. Compare Your Payslip to Your Previous Payslips

When you have been underpaid, the first thing to do is check your payslip. If you receive a regular salary, check which items have changed compared to your last payslip.

Sometimes, there are tax increases, national insurance changes, or other changes. These can change the amount you get. Check with your employer to ensure everything is correct if you spot a difference.

2. Check Your Tax Code Is Correct

Your employer uses your tax code to work out your tax. However, it is HM Revenue and Customs who actually set your tax code. If they change it, your pay changes as a consequence.

You can phone HM Revenue and Customs to check if your tax code is correct. It should only take about ten minutes. This is much easier than talking to your employer. Their contact number is 0300 200 3300.

3. Speak to Your Employer

If your tax code is correct and there is no reason why your pay should have changed in your payslip, speak to your employer.

Bring the error to their attention as soon as you can. You cannot assume you will automatically get the missing amount on your next payday.

If you wait longer than three months, it will be difficult to recover your money. As getting your pay may be time-consuming, starting it as soon as possible is best.

What to Do if Your Employer Wants You to Wait

1. Wait

As dumb as it sounds, the easiest way is to wait. Asking for your money earlier or taking action may impact your relationship with your employer.

If you do not need the money, you may want to prioritise staying on good terms with your employer. Even if you want to change workplaces soon, you still depend on your employer for references.

2. Speak to Human Resources (HR)

Sometimes, your employer may be unaware of how urgently you need your pay. You’ll need to make your case clear to human resources. Bigger companies may have a dedicated person who deals with these issues. In small companies, the owner may be in charge of payment decisions.

You can explain why you need your pay. It may be that you have children who are dependent on you or that you cannot pay bills. Most often, employers understand these situations and speed up the payment process.

3. Raise a Formal Grievance

You can escalate the situation if you cannot wait and your employer won’t listen. Remember that this may negatively affect your relationship with your employer.

A formal grievance is a way to raise a complaint to your employer, to which your employer must respond. Start this process by writing a formal letter to your employer.

The downside of raising a formal grievance is that the process may take some time. A hearing should occur within five days, but it may be longer until you get an outcome.

4. Use a Conciliation Service

Conciliation is a voluntary process to resolve workplace issues. Your employer must agree to the conciliation for it to take place. Conciliation is done with an independent conciliator. The Advisory, Conciliation and Arbitration Service (Acas) offer a free service to help solve payment problems.

5. Lodge an Employment Tribunal Complaint

An employment tribunal is the most serious way to get your missing pay. Try the solutions mentioned above before proceeding with an employment tribunal. You must tell Acas before you complain. Seek legal advice if you want to proceed with your claim.

Underpaid: Do I Have to Wait till Next Payday? Summary

If you are underpaid, you should not wait until the next payday. Yet, before you speak to your employer, you should check your payslip.

You may have been paid less due to tax changes that are not your employer’s fault. It is best to wait if your employer says so to keep a good relationship. However, there are ways to escalate the underpayment issue to get your money sooner.

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