Legislation – Employment Rights Act 2025
Changes to legislation:
Employment Rights Act 2025, Section 103 is up to date with all changes known to be in force on or before 01 April 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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Part 5Enforcement of labour market legislation
Notices of underpayment
103Power to give notice of underpayment
(1)
Where it appears to the Secretary of State that—
(a)
on any day (“the relevant day”), a sum in respect of—
(i)
one or more periods ending before the relevant day, or
(ii)
one or more events occurring before the relevant day,
was due from a person (the “liable party”) to an individual (the “underpaid individual”) under or by virtue of a statutory pay provision (see subsection (7)), and
(b)
any period for payment of that sum to be made has ended without the sum having been paid to the underpaid individual,
the Secretary of State may give a notice of underpayment to the liable party.
(2)
A notice of underpayment is a notice under this section requiring the liable party to pay the required sum to the underpaid individual before the end of the period of 28 days beginning with the day on which the notice is given.
For the meaning of the “required sum”, see section 104.
(3)
Subsection (1) is subject to—
(a)
subsection (6), and
(b)
section 105 (period to which notice of underpayment may relate).
(4)
The Secretary of State may give a notice of underpayment to a person in respect of a sum that was due from the person on the relevant day whether or not the sum remains due at the time of the giving of the notice (see, in particular, section 107 (penalties for underpayment)).
(5)
But where all or part of that sum has been paid before the giving of the notice, the requirement imposed by the notice is, to that extent, to be treated as met.
(6)
The Secretary of State may not give a notice of underpayment in respect of any matter if—
(a)
proceedings have been brought about the matter by virtue of section 116 (power to bring proceedings in employment tribunal), and
(b)
the proceedings have not been finally determined or discontinued.
(7)
In this Part “statutory pay provision” means a provision of relevant labour market legislation that—
(a)
confers a right or entitlement to the payment of any sum to an individual, or
(b)
prohibits or restricts the withholding of payment of any sum to an individual.