Can Employers Deduct Pay for Attending Internal Interviews?

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Understanding Your Rights, the Law, and What You Can Do

Internal job interviews are part of the natural career progression in many workplaces. They give employees the opportunity to move into higher positions, change departments, or take on new challenges without leaving the organisation. However, disputes can arise when employers deduct pay or insist that staff take time off in lieu (TOIL) for attending these interviews during working hours. The key question is: Is this legal? And if it happens to you, what can you do?

Is It Legal for Employers to Deduct Pay or Force Time Off in Lieu?

The short answer is: Generally, no, unless your employment contract or workplace policy clearly states otherwise.

Here’s why:

• Employment Contracts and Terms
  • Most contracts don’t specifically address internal interviews, but they often include provisions for “reasonable time off” for work-related activities. Internal interviews fall under this category because they directly relate to your role and progression within the company.
  • If the contract is silent, the expectation is that internal interviews should be treated as part of normal working duties.
• Working Time Regulations 1998
  • These regulations focus on rest breaks, working hours, and leave entitlements rather than interviews specifically, but they do protect against unfair reduction in paid time for work-related obligations.
• ACAS Guidance
  • ACAS (Advisory, Conciliation and Arbitration Service) advises that internal interviews should be facilitated during working hours without loss of pay, unless there’s a prior agreement stating otherwise.
• Custom and Practice
  • If it’s normal practice in your workplace for staff to attend internal interviews without penalty, suddenly deducting pay or forcing TOIL could be a breach of the implied terms of your employment.

When Employers Might Legally Deduct Pay

There are rare circumstances where deductions might be lawful:

• Your Contract Explicitly States It: If there’s a clause saying time spent away from core duties, even for internal interviews, is unpaid or must be taken as TOIL.
• You’re on an Hourly Zero-Hours Arrangement: In such cases, you’re only paid for the hours you work, so any absence may be unpaid.
• Misuse of Time: If the “interview” time is used for non-work-related purposes, and your employer can prove this.

What the Law Says About Deductions

The Employment Rights Act 1996 is clear on unlawful deductions from wages:

• Employers cannot make deductions unless:
  1. It’s required by law (e.g., tax, National Insurance)
  2. It’s authorised in your contract
  3. You have given prior written consent

If your employer deducts pay for attending an internal interview without one of these justifications, it may be an unlawful deduction, giving you grounds to make a claim.

What Can a Worker Do if It Happens?

If your employer deducts pay or insists you take TOIL for attending an internal interview:

1. Check Your Contract and Handbook
   • Look for any clauses about internal movement, interviews, or time off for workplace activities.
2. Raise the Issue Informally
   • Speak to your line manager or HR and explain that internal interviews are part of career development and should be paid time.
3. Put It in Writing
   • If the issue isn’t resolved, send a formal letter or email requesting repayment or removal of the TOIL requirement.
4. Use Your Company’s Grievance Procedure
   • If management refuses, raise a formal grievance.
5. Seek External Advice
   • Contact ACAS, a trade union, or an employment solicitor for guidance.
   • If needed, you can make a claim for unlawful deduction from wages at an employment tribunal (time limit: usually three months minus one day from the deduction date).

Conclusion

Employers should remember that encouraging career development builds staff loyalty. Penalising employees for attending internal interviews can damage morale, retention, and reputation, and may also risk legal claims. Attending an internal interview is a legitimate part of your employment and, in most cases, should not result in a loss of pay or forced time off in lieu. Unless the contract specifically allows for it, any deduction may be unlawful. If this happens, the employee will have the right to challenge it and, if necessary, seek legal redress.

Further Reading & Resources:

• Acas | Making working life better for everyone in Britain
• https://disabledentrepreneur.uk/category/cymru-law/