In short
Since 1 October 2026, employees have six months instead of three to bring most employment tribunal claims, including claims for unlawful deductions from wages, the claim most linked to payroll mistakes. The new limit applies where the deduction or other act happened on or after 1 October 2026. Employers should keep clear pay records, fix underpayments quickly and check pay rates, overtime and holiday pay are right every pay run.
The Employment Rights Act 2025 is coming in over two years. Most of October's changes are about HR, but one has a direct effect on payroll: staff now have twice as long to bring a claim when their pay is wrong.
Six months to claim for underpaid wages
The time limit for bringing most employment tribunal claims went up from three months to six months on 1 October 2026, according to the government's employment changes guidance. That includes claims for unlawful deductions from wages, according to Mondaq's summary of the commencement regulations.
The new limit applies where the act being complained about happened on or after 1 October 2026. Where there is a series of acts, such as the same underpayment repeated every pay period, the date that counts is the last one in the series, according to Clarkslegal. A repeated payroll error can stay open to challenge for a long time.
The payroll errors that most often lead to claims
- Minimum wage: pay falling below the current rates (£12.71 an hour for workers aged 21 and over since 1 April 2026), often after deductions for uniforms or unpaid time at the start or end of shifts. Rates are on GOV.UK.
- Age band changes: missing the move to a higher rate when a young worker or apprentice has a birthday.
- Overtime and extra hours that are approved but not paid, or paid at the wrong rate.
- Holiday pay calculated without regular overtime or commission, or wrongly accrued for irregular-hours staff.
- Statutory Sick Pay: since April 2026, SSP is payable from the first day of sickness. Our SSP guide explains the change.
- Deductions for overpayments, training costs or equipment without written agreement.
What to do now
- Keep clear records. HMRC requires you to keep PAYE records for at least 3 years after the end of the tax year they relate to, according to GOV.UK. Minimum wage records must be kept for at least 6 years, according to GOV.UK's minimum wage guidance for employers. Keep timesheets, overtime approvals and signed deduction agreements with them.
- Fix underpayments quickly. Pay arrears in the next pay run and keep a note of what was corrected and why. A small error put right promptly rarely becomes a claim.
- Check rates every pay run, especially for apprentices and staff close to an age band change.
- Plan for April 2027. New minimum wage rates will be confirmed around the Autumn Budget on 28 October.
Other changes this autumn
From 30 October 2026, employers must take "all reasonable steps" to prevent sexual harassment, including by third parties, and trade unions gain a new right to request workplace access where there are 21 or more workers, according to business.gov.uk. These don't change how payroll is calculated. Unfair dismissal changes follow on 1 January 2027. The full timetable is on GOV.UK.
Payroll you can rely on: Buffalo Payroll checks minimum wage, age bands, statutory pay and holiday pay every pay run, and keeps a full record of each change, as part of our managed payroll service from £5.50 + VAT per payslip.
This article is general information based on official sources at the date of publishing, not legal or tax advice. Rules can change, so check the linked guidance or talk to us about your payroll.