{"id":47945,"date":"2026-02-23T06:09:29","date_gmt":"2026-02-23T06:09:29","guid":{"rendered":"https:\/\/employmenthero.com\/uk\/?p=47945"},"modified":"2026-02-23T06:09:32","modified_gmt":"2026-02-23T06:09:32","slug":"how-to-calculate-back-pay","status":"publish","type":"post","link":"https:\/\/employmenthero.com\/uk\/blog\/how-to-calculate-back-pay\/","title":{"rendered":"How to Calculate Backdated Pay Correctly in 2026"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull blog-template-header has-neutral-100-background-color has-background has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-bottom:var(--wp--preset--spacing--16)\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\"><div style=\"--bb--crumb-gap:.4em;\" class=\"blog-template-breadcrumb wp-block-employmentherocom2025-breadcrumb-block\"><nav role=\"navigation\" aria-label=\"Breadcrumbs\" class=\"breadcrumb\"><ol 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9.44693666,8.24224316 C8.94677511,7.81302264 8.20254916,7.8816073 7.78481199,8.39527139\" id=\"Fill-4\" fill=\"#000000\" mask=\"url(#mask-4)\"><\/path> <\/g> <\/g> <\/g> <\/g> <\/svg> \n    <\/span>\n            <span class=\"eh-social-sharing-button__copied_text\">\n            URL copied for sharing!        <\/span>\n    <\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-5 wp-block-group-is-layout-constrained\"><h1 class=\"blog-template-title wp-block-post-title\">How to Calculate Backdated Pay Correctly in 2026<\/h1><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group is-layout-flex wp-container-core-group-is-layout-7 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-query wp-block-hosts-query has-global-padding is-content-justification-left is-layout-constrained wp-container-core-query-is-layout-1 wp-block-query-is-layout-constrained\"><\/div>\n\n\n\n<div class=\"wp-block-group blog-template-meta-row is-layout-flex wp-container-core-group-is-layout-6 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-employmentherocom2025-custom-post-date has-sm-font-size\">\n    <span>Published<\/span>&nbsp;<time datetime=\"2026-02-23T06:09:29+00:00\">Feb 23, 2026<\/time>\n<\/p>\n\n\n<p class=\"has-sm-font-size\" style=\"border-left-color:var(--wp--preset--color--neutral-700);border-left-width:1px;padding-left:var(--wp--preset--spacing--2)\"><\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull blog-image-container has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-image aligncenter size-full is-resized blog-template-image\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1396\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/How-to-Calculate-Backdated-Pay-Correctly-in-2026-scaled.webp\" alt=\"Two people in a busy office discuss intently at a desk covered with papers. A laptop showing graphs is open. The mood is focused and collaborative.\" class=\"wp-image-47948\" style=\"aspect-ratio:16\/9;object-fit:cover;width:864px\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/How-to-Calculate-Backdated-Pay-Correctly-in-2026-scaled.webp 2560w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/How-to-Calculate-Backdated-Pay-Correctly-in-2026-300x164.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/How-to-Calculate-Backdated-Pay-Correctly-in-2026-1024x559.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/How-to-Calculate-Backdated-Pay-Correctly-in-2026-768x419.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/How-to-Calculate-Backdated-Pay-Correctly-in-2026-1536x838.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/How-to-Calculate-Backdated-Pay-Correctly-in-2026-2048x1117.webp 2048w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/How-to-Calculate-Backdated-Pay-Correctly-in-2026-440x240.webp 440w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n<\/div>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:30%\">\n<div class=\"wp-block-group sticky-side-panel is-vertical is-content-justification-stretch is-layout-flex wp-container-core-group-is-layout-11 wp-block-group-is-layout-flex wp-container-2 is-position-sticky\">\n<p class=\"has-lg-font-size\" style=\"border-bottom-color:var(--wp--preset--color--neutral-200);border-bottom-width:0.1rem;padding-top:var(--wp--preset--spacing--4);padding-bottom:var(--wp--preset--spacing--4)\"><strong>Contents<\/strong><\/p>\n\n\n\n<div class=\"content-single-table-content\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:70%\">\n<div id=\"content-wrapper\" class=\"wp-block-group content-wrapper has-global-padding is-layout-constrained wp-container-core-group-is-layout-12 wp-block-group-is-layout-constrained\" style=\"padding-bottom:var(--wp--preset--spacing--4)\">\n<p class=\"has-paragraph-2-m-font-size\">Whether you\u2019re running a business or working in HR, payroll is one of the most important responsibilities you\u2019ll manage. The reality is, in the world of employment, few things matter more than being paid correctly.&nbsp;<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">So when there\u2019s a mistake, it\u2019s essential to rectify it as quickly as possible. This is where back pay comes in. But it\u2019s important to recognise that calculating back pay is more than just administrative clean-up, it\u2019s about supporting <a href=\"https:\/\/employmenthero.com\/uk\/resources\/hr-manager-payroll-compliance\/\">payroll compliance<\/a> and maintaining trust.&nbsp;<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Want to know more about back pay? Let\u2019s dive in.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are back wages?<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Jargon always sounds complicated, so when terms like \u201cback wages\u201d are thrown around, it\u2019s easy to feel confused. But it\u2019s not as intimidating as it sounds. Back wages is just industry- speak for the money a business owes an employee for past work. Essentially it\u2019s the difference between what they were paid and what they should have been paid. Simple as that.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">But, we will admit that there are several terms floating around when it comes to this topic and while they are used interchangeably, there are some small distinctions. Here\u2019s a breakdown:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Back wages<\/strong><\/td><td>The term often used in legal or employment contexts to describe wages owed due to underpayment, sometimes relating to disputes or employment claims.<\/td><\/tr><tr><td><strong>Back pay<\/strong><\/td><td>Refers to any delayed or missed pay adjustments, such as a late pay rise or unpaid overtime.<\/td><\/tr><tr><td><strong>Underpayments<\/strong><\/td><td>When employees are paid less than they should have been for a certain period.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Regardless of the exact terminology used, this is about correcting a payroll mistake.&nbsp;<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Getting it right isn&#8217;t just about fixing a number; it&#8217;s about showing your team you&#8217;ve got their back. When you run a business, you&#8217;re not just an employer; you&#8217;re a leader building a future. Handling pay issues with integrity is a cornerstone of that leadership. It shows you value your people and respect the law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Common reasons employers might owe backdated pay<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Mistakes happen. The key is to catch them, correct them and learn from them. Back pay situations usually pop up from a few common scenarios. Being aware of these can help employers avoid them:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li><strong>Overtime errors<\/strong>: This often occurs when <a href=\"https:\/\/employmenthero.com\/uk\/resources\/overtime-pay-laws\/\">overtime hours<\/a> weren\u2019t tracked correctly or the rate of pay was miscalculated. With different rules and hourly rates for different roles, it\u2019s an easy place to slip up.<\/li>\n\n\n\n<li><strong>Employee misclassification<\/strong>: Classifying an employee as an independent contractor or as \u201cexempt\u201d from overtime when they don\u2019t meet the legal criteria can lead to significant back wages owed.<\/li>\n\n\n\n<li><strong>Wage disputes<\/strong>: An employee might raise a concern that they\u2019ve been underpaid, whether due to an incorrect hourly rate, uncounted hours or missed commissions.<\/li>\n\n\n\n<li><strong>Pay rises applied late<\/strong>: When a salary increase isn\u2019t implemented until after the official date.<\/li>\n\n\n\n<li><strong>Minimum wage changes<\/strong>: When national or state minimum wages rise, payroll must keep pace. If an employee\u2019s pay falls below the new minimum for any period, back pay is required.<\/li>\n\n\n\n<li><strong>Payroll system errors<\/strong>: Technical mistakes, such as incorrect calculations or missing entries.<\/li>\n\n\n\n<li><strong>Role changes or promotions<\/strong>: Adjustments that weren\u2019t reflected in payroll immediately.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Back wages compliance essentials<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Correctly handling and calculating back pay isn\u2019t just good practice, it\u2019s a legal obligation. For employers in the UK, failing to address underpayments promptly can lead to serious consequences, both for your employees and your business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employer obligation to correct underpayments<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">UK law requires that employees are paid the wages they are entitled to, including any adjustments for missed pay, overtime or incorrect rates. If an underpayment is discovered, it\u2019s the employer\u2019s responsibility to make it right. This ensures compliance with employment contracts, the National Minimum and Living Wage regulations and employment law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why timing matters<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Delaying back pay can increase the risk of disputes and create unnecessary stress for employees. Paying promptly not only meets your legal obligations but also reinforces trust and maintains morale. The sooner errors are corrected, the smaller the administrative and reputational impact.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The cost of getting it wrong<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Failing to handle back pay correctly can lead to:<\/p>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li><strong>Employee disputes<\/strong>: Disgruntled employees may raise complaints, <a href=\"https:\/\/employmenthero.com\/uk\/resources\/grievance-and-dispute-procedure\/\">grievances or disputes<\/a>.\u00a0<\/li>\n\n\n\n<li><strong>Reputational damage<\/strong>: Word spreads quickly when payroll errors aren\u2019t addressed, which can affect retention and recruitment.<\/li>\n\n\n\n<li><strong>Regulatory penalties<\/strong>: Non-compliance with minimum wage or contractual obligations can result in fines and enforcement action.<br><\/li>\n<\/ul>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Being proactive with back pay isn\u2019t just about avoiding penalties,&nbsp; it\u2019s an opportunity to show employees that your business is fair, trustworthy and attentive to detail. Correcting errors quickly helps protect your business while maintaining a positive workplace culture.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step-by-step guide to calculating back pay<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Payroll adjustments are stressful, but they are also a key part of effectively running a business. And here\u2019s the thing, calculating back pay right is a huge green flag for you as an employer. It proves you\u2019re serious about fairness and protecting your team.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">When you take the emotion out of it, back pay is just another process\u2026 and one that is solvable if you follow the right steps. . Here\u2019s the straightforward breakdown to resolving back pay in 2026.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Identify the period requiring adjustment<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">It\u2019s important to start off with the basics and in this case that is the \u201cwhen\u201d. Establish exactly when the error started and when it ended (or if it\u2019s still ongoing). Consider:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li>Is it a single pay period<\/li>\n\n\n\n<li>Does it stretch back to the start of the fiscal year?<\/li>\n<\/ul>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Being precise here is non-negotiable. If you guess the dates, you\u2019re just creating a new error to fix later.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Gather your receipts (and records)<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">You can\u2019t calculate what you can\u2019t see. Pull every piece of data relevant to the affected period. We\u2019re talking:<\/p>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li>Original timesheets and attendance records.<\/li>\n\n\n\n<li>Employment contracts outlining agreed rates.<\/li>\n\n\n\n<li>Historical pay rates and any changes that happened during that time.<\/li>\n\n\n\n<li>Payroll <a href=\"https:\/\/employmenthero.com\/uk\/resources\/payroll-reporting-analytics\/\">analytics and reports<\/a> showing what was actually paid.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">This is where having a digital paper trail is a lifesaver. If you\u2019re digging through filing cabinets, now is the perfect time to commit to a digital upgrade.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Calculate the difference<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">This is the core of the work. For each affected pay period, calculate two numbers:<\/p>\n\n\n\n<ol class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li><strong>What you paid:<\/strong> The net amount the employee actually received.\u00a0<\/li>\n\n\n\n<li><strong>What you owed:<\/strong> The amount they <em>should<\/em> have received based on the correct rate, classification, or hours. Start by comparing the gross pay (before PAYE tax, National Insurance and pension deductions). Work out what the employee was actually paid in gross, and what they should have been paid in gross based on the correct rate, classification or hours.Then calculate the corresponding net pay (after deductions) for both figures.Finally, subtract the actual net pay received from the correct net pay that should have been received. The difference is the back pay owed.Make sure you do this calculation for each pay period individually, rather than lumping everything together at the start, as this helps ensure tax brackets and withholdings are applied correctly.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4: Factor in interest or penalties<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Depending on the reason for the underpayment, you might owe more than just wages. Some situations require interest on unpaid wages to compensate the employee for the delay. Check the specific regulations for 2026. If you\u2019re correcting a mistake voluntarily before a regulator gets involved, you\u2019re often in a much better position than if you\u2019re reacting to a judgment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5: Document everything<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Transparency builds trust. Once you have the final number, write down exactly how you got there. Create a clear breakdown for your employee showing:<\/p>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li>The error period.<\/li>\n\n\n\n<li>The original pay vs. the corrected pay.<\/li>\n\n\n\n<li>The math used to bridge the gap.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How back pay is processed through payroll<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Calculating back pay is only one piece of the puzzle, the next step is processing it through payroll.&nbsp;<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Not sure how? We\u2019ve broken it down:<\/p>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li><strong>Add the gross back pay to the next payroll run: <\/strong>In most cases, back pay is added to the employee\u2019s next scheduled payroll run. This approach keeps payments consistent, ensures deductions are calculated correctly and simplifies reporting. It also reduces the administrative burden of running off-cycle payrolls unless the situation is urgent.<\/li>\n\n\n\n<li><strong>Get the admin right<\/strong>: Back pay can either be included in the regular <a href=\"https:\/\/employmenthero.com\/uk\/blog\/payslips-explained-tips-to-help-your-employees\/\">payslip<\/a>, clearly itemised as a separate line or paid as a separate back pay payment, with its own payslip. It\u2019s important to decide which option is best for your business. Generally, including back pay in the regular payslip is often preferred, as it provides clearer context and avoids confusion. However, separate payments may be appropriate in certain circumstances, such as large corrections or urgent underpayments.<\/li>\n\n\n\n<li><strong>Organise record-keeping: <\/strong>Accurate records are essential when processing back pay. Employers should keep clear documentation showing:<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li>Why the back pay was required.<\/li>\n\n\n\n<li>The period it covers.<\/li>\n\n\n\n<li>How the amount was calculated.<\/li>\n\n\n\n<li>When it was paid.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Good record-keeping supports compliance, simplifies audits and provides clarity if questions arise later.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Employees should be able to see exactly what they\u2019re being paid and why. Clearly labelling back pay on payslips helps prevent misunderstandings and reassures employees that corrections have been handled fairly and accurately. Transparency turns a payroll correction into a trust-building moment rather than a source of concern.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tax and reporting considerations<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Here it is, the word no one wants to hear\u2026 tax. And it\u2019s important to remember that back pay doesn\u2019t just impact take-home pay, it also has tax and reporting implications. Handling these correctly helps reduce confusion and protects your business from compliance risks.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\"><strong>How back pay is taxed: <\/strong>In the UK, back pay is generally taxed in the pay period in which it is paid, not when it was originally earned. This means income tax and National Insurance are applied through PAYE as part of the current payroll run.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\"><strong>Why employees may notice higher deductions: <\/strong>Because back pay increases gross earnings for that pay period, employees may see higher pension contributions, tax, student loan or National Insurance deductions than usual. This is normal, but without explanation it can cause concern,&nbsp; especially if the back pay amount is significant.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\"><strong>How to explain this to avoid confusion: <\/strong>Clear communication is key. Let employees know:<\/p>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li>Why back pay is being paid.<\/li>\n\n\n\n<li>How it appears on their payslip.<\/li>\n\n\n\n<li>Why deductions may be higher for that period.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">A short explanation can prevent unnecessary queries and reinforce confidence in your payroll process.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\"><strong>Reporting accuracy for Year-End payroll: <\/strong>Back pay must be reported accurately for year-end processes, including payslips, payroll summaries and <a href=\"https:\/\/www.gov.uk\/government\/organisations\/hm-revenue-customs\" target=\"_blank\" rel=\"noreferrer noopener\">HMRC<\/a> submissions. Errors here can create complications later, so it\u2019s important that back pay is processed correctly through your payroll system from the outset.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Common back pay mistakes to avoid in 2026<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Running a business is tough enough without <a href=\"https:\/\/employmenthero.com\/uk\/resources\/payroll-mistakes-fixes-webinar\/\">payroll mistakes<\/a> to think about as well. When it comes to back pay, even small slip-ups can cause unwanted problems. And this is something all business owners and HR professionals want to avoid.&nbsp;<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">But that good news is that most of these errors are avoidable. By understanding some of the most common mistakes, it\u2019s easier to dodge them. So here are the biggest pitfalls to watch out for in 2026.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Forgetting secondary pay elements<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Back pay isn\u2019t always limited to base salary or hourly rates. It\u2019s easy to overlook secondary pay elements such as overtime, allowances, shift loadings, bonuses or commissions. Missing these can result in employees still being underpaid, even after a correction has been made.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Incorrect date ranges<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Using the wrong start or end date is a common back pay mistake. This often happens when pay changes take effect mid-pay period or when role changes aren\u2019t recorded accurately. Even a one-day error can affect compliance and employee trust.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Manual spreadsheet errors<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Relying on manual spreadsheets increases the risk of calculation mistakes, formula errors or outdated data being used. As payroll becomes more complex in 2026, manual methods make it harder to ensure accuracy, consistency and auditability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Poor documentation<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Failing to document why back pay was required, how it was calculated and when it was paid can cause problems later, especially if an employee queries their pay or during audits. Clear records protect both the employer and the employee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delayed corrections<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Putting off back pay corrections can turn a small issue into a much bigger one. Delays increase the risk of disputes, reduce employee confidence and may lead to regulatory scrutiny. Addressing errors promptly helps limit their impact and shows good faith.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Simplify back pay calculations with payroll software<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">While it can sometimes feel like the stakes are really high when it comes to calculating back pay, it doesn\u2019t have to be this way. With the right <a href=\"https:\/\/employmenthero.com\/uk\/products\/payroll-software\/\">payroll software<\/a>, correcting underpayments becomes faster, more accurate and far less stressful.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Modern payroll systems automate complex calculations, apply the correct tax and deductions and maintain clear audit trails. This all reduces the risk of manual errors and compliance issues and make it easier to itemise back pay on payslips, keep records up to date and explain corrections clearly to employees. What\u2019s not to like?<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">In 2026, payroll accuracy isn\u2019t just about paying people on time, it\u2019s about responding quickly and confidently when adjustments are needed. Payroll software helps turn back pay from a reactive fix into a controlled, transparent process that protects compliance, reinforces trust and keeps payroll running smoothly, even when mistakes happen.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Want to know more about how 91±¬ΑΟ can support with payroll?<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-text-align-left wp-element-button\" href=\"https:\/\/employmenthero.com\/uk\/request-a-demo\/\">Book a demo<\/a><\/div>\n<\/div>\n\n\n\n<style>\n.content-wrapper li > ul li {padding-bottom:0.75rem!important;}\n.content-wrapper li:last-child > ul li {padding-bottom:0!important;}\n.eh-faq__container {flex-direction:column!important;}\n@media screen and (min-width: 1441px) {\n\u00a0.eh-faq__content {\n\u00a0max-width: 904px!important;\n\u00a0min-width: 715px!important;\n\u00a0}\n}\n.eh-faq {padding:0px 0px 24px 0px!important;}\n<\/style>\n\n\n\n<div class=\"wp-block-employmentherocom2025-faq eh-faq eh-faq__bg-light\"><div class=\"eh-faq__container\"><div class=\"eh-faq__header\"><h2 class=\"eh-faq__title\">FAQs<\/h2><p class=\"eh-faq__subtitle\"><\/p><\/div><div class=\"eh-faq__content\">\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771424868622\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771424868622\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">How does back pay work?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p class=\"has-paragraph-2-m-font-size\">Back pay is paid when an employee has been underpaid for work they\u2019ve already completed. Once the error is identified, the employer calculates the difference between what was paid and what should have been paid, then processes the adjustment through payroll. Back pay is usually included in the next payroll run and shown as a separate line on the payslip.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771424868630\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771424868630\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">What are the rules for back pay?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p class=\"has-paragraph-2-m-font-size\">In the UK, employers are legally required to correct underpayments and pay employees what they are owed. This includes errors relating to hourly rates, salaries, overtime, commissions and minimum wage compliance. Back pay must be processed accurately, taxed correctly through PAYE and clearly documented to meet employment and payroll obligations.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771424901027\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771424901027\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">How far back can back pay be claimed in the UK?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p class=\"has-paragraph-2-m-font-size\">In the UK, employees can generally claim back pay for underpaid wages going back up to two years through an unlawful deduction from wages claim. For National Minimum Wage underpayments, HMRC may investigate further back. Employers should correct underpayments as soon as they are discovered to reduce legal and financial risk.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771424928887\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771424928887\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">How do you calculate tax on back pay?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p class=\"has-paragraph-2-m-font-size\">Back pay is taxed in the pay period in which it is paid, not when it was originally earned. It is processed through PAYE alongside the employee\u2019s regular earnings, with income tax, National Insurance and pension contributions applied as normal. Because back pay increases gross pay for that period, employees may see higher deductions than usual.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771824778588\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771824778588\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">How far back can back pay be claimed in the UK?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p>In the UK, employees can usually claim back pay for underpaid wages going back up to two years through an unlawful deduction from wages claim. This time limit applies in most employment tribunal cases. However, for National Minimum Wage underpayments, HMRC can investigate and enforce repayments covering longer periods. Employers should correct underpayments as soon as they are identified to reduce the risk of claims, penalties and disputes.<\/p>\n<\/div><\/div><\/div>\n<\/div><\/div><\/div>\n<script type=\"application\/ld+json\">{\n    \"@context\": \"https:\/\/schema.org\/\",\n    \"@type\": \"FAQPage\",\n    \"mainEntity\": [\n        {\n            \"@type\": \"Question\",\n            \"name\": \"How does back pay work?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>Back pay is paid when an employee has been underpaid for work they\\u2019ve already completed. Once the error is identified, the employer calculates the difference between what was paid and what should have been paid, then processes the adjustment through payroll. Back pay is usually included in the next payroll run and shown as a separate line on the payslip.<\/p>\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What are the rules for back pay?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>In the UK, employers are legally required to correct underpayments and pay employees what they are owed. This includes errors relating to hourly rates, salaries, overtime, commissions and minimum wage compliance. Back pay must be processed accurately, taxed correctly through PAYE and clearly documented to meet employment and payroll obligations.<\/p>\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"How far back can back pay be claimed in the UK?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>In the UK, employees can generally claim back pay for underpaid wages going back up to two years through an unlawful deduction from wages claim. For National Minimum Wage underpayments, HMRC may investigate further back. Employers should correct underpayments as soon as they are discovered to reduce legal and financial risk.<\/p>\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"How do you calculate tax on back pay?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>Back pay is taxed in the pay period in which it is paid, not when it was originally earned. It is processed through PAYE alongside the employee\\u2019s regular earnings, with income tax, National Insurance and pension contributions applied as normal. Because back pay increases gross pay for that period, employees may see higher deductions than usual.<\/p>\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"How far back can back pay be claimed in the UK?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>In the UK, employees can usually claim back pay for underpaid wages going back up to two years through an unlawful deduction from wages claim. This time limit applies in most employment tribunal cases. However, for National Minimum Wage underpayments, HMRC can investigate and enforce repayments covering longer periods. Employers should correct underpayments as soon as they are identified to reduce the risk of claims, penalties and disputes.<\/p>\"\n            }\n        }\n    ]\n}<\/script><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull is-style-default has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--20);padding-bottom:var(--wp--preset--spacing--20)\">\n<div class=\"wp-block-group is-content-justification-space-between is-layout-flex wp-container-core-group-is-layout-13 wp-block-group-is-layout-flex\" style=\"margin-bottom:var(--wp--preset--spacing--10)\">\n<h3 class=\"wp-block-heading\">Related Resources<\/h3>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-link-arrow is-style-link-arrow--3\"><a class=\"wp-block-button__link has-btn-brand-background-color has-background wp-element-button\" href=\"\/resources\/?topic%5B0%5D%5B0%5D=Product\">View all<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-query blog-3-col-query-loop is-layout-flow wp-block-query-is-layout-flow\"><ul class=\"columns-3 alignfull wp-block-post-template is-layout-grid wp-container-core-post-template-is-layout-1 wp-block-post-template-is-layout-grid\"><li class=\"wp-block-post post-50792 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized tag-in-depth-analysis resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-16 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:auto; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-rights-act-fire-and-rehire\/\" target=\"_self\"  ><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide-.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Fire and Rehire Restrictions Under the Employment Rights Act: A UK Employer&#8217;s Guide\" style=\"width:100%;height:100%;object-fit:fill;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide-.webp 1600w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--300x169.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--1024x576.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--768x432.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--1536x864.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Fire-and-Rehire-Restrictions-Under-the-Employment-Rights-Act-A-UK-Employers-Guide--440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group is-vertical is-nowrap is-layout-flex wp-container-core-group-is-layout-15 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-14 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-rights-act-fire-and-rehire\/\" target=\"_self\" >Fire and Rehire Restrictions Under the Employment Rights Act: A UK Employer&#8217;s Guide<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-2\"><p class=\"wp-block-post-excerpt__excerpt\">The Employment Rights Act 2025 fundamentally restricts fire and rehire in the UK. Understand what&#8217;s changing, when it takes effect&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-rights-act-fire-and-rehire\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: Fire and Rehire Restrictions Under the Employment Rights Act: A UK Employer&#8217;s Guide<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-rights-act-fire-and-rehire\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><li class=\"wp-block-post post-50755 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized tag-employment-rights-act tag-in-depth-analysis resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-19 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:auto; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/fair-work-agency-hmrc-employers-guide\/\" target=\"_self\"  ><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"The Fair Work Agency vs HMRC: What&#8217;s Different For Employers\" style=\"width:100%;height:100%;object-fit:fill;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers.webp 1600w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-300x169.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-1024x576.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-768x432.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-1536x864.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/The-Fair-Work-Agency-vs-HMRC-Whats-Different-For-Employers-440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group is-vertical is-nowrap is-layout-flex wp-container-core-group-is-layout-18 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-17 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/fair-work-agency-hmrc-employers-guide\/\" target=\"_self\" >The Fair Work Agency vs HMRC: What&#8217;s Different For Employers<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-4\"><p class=\"wp-block-post-excerpt__excerpt\">The Fair Work Agency has replaced HMRC for employment rights. Understand the split, what&#8217;s changed for holiday pay and SSP,&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/blog\/fair-work-agency-hmrc-employers-guide\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: The Fair Work Agency vs HMRC: What&#8217;s Different For Employers<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/blog\/fair-work-agency-hmrc-employers-guide\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><li class=\"wp-block-post post-50767 post type-post status-publish format-standard has-post-thumbnail hentry category-uncategorized tag-employment-rights-act tag-in-depth-analysis resource-type-blog\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-22 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:auto; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/collective-redundancy-changes-employment-rights-act-2025\/\" target=\"_self\"  ><img loading=\"lazy\" decoding=\"async\" width=\"1600\" height=\"900\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Collective Redundancy and the Employment Rights Act: What Changes for UK Employers\" style=\"width:100%;height:100%;object-fit:fill;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers.webp 1600w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-300x169.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-1024x576.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-768x432.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-1536x864.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/05\/Collective-Redundancy-and-the-Employment-Rights-Act-What-Changes-for-UK-Employers-440x248.webp 440w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group is-vertical is-nowrap is-layout-flex wp-container-core-group-is-layout-21 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-20 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/blog\/\" rel=\"tag\">Blogs<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/blog\/collective-redundancy-changes-employment-rights-act-2025\/\" target=\"_self\" >Collective Redundancy and the Employment Rights Act: What Changes for UK Employers<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-6\"><p class=\"wp-block-post-excerpt__excerpt\">The Employment Rights Act 2025 has doubled the penalty for missed collective consultation. Find out what&#8217;s changed, what&#8217;s coming and&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/blog\/collective-redundancy-changes-employment-rights-act-2025\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: Collective Redundancy and the Employment Rights Act: What Changes for UK Employers<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/blog\/collective-redundancy-changes-employment-rights-act-2025\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><\/ul><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to calculate backdated pay correctly in 2026 with simple steps, examples and UK payroll compliance tips for HR teams and business owners.<\/p>\n","protected":false},"author":454,"featured_media":47948,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lite_auth_enabled":false,"_lite_auth_trigger_method":"scroll","_lite_auth_scroll_percent":25,"_lite_auth_click_element_query":"","exclude_from_algolia":false,"reading_time":"10 min read","display_reading_time":false,"download_content_type":"","download_file":"","download_url":"","download_cta_label":"","footnotes":""},"categories":[1],"tags":[],"resource-type":[157],"topic":[],"industry":[],"audience":[],"business-size":[],"product-tag":[],"funnel-stage":[],"region":[],"pain-point":[],"persona":[],"post_features":[],"class_list":["post-47945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","resource-type-blog"],"_links":{"self":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/47945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/users\/454"}],"replies":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/comments?post=47945"}],"version-history":[{"count":2,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/47945\/revisions"}],"predecessor-version":[{"id":47950,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/47945\/revisions\/47950"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/media\/47948"}],"wp:attachment":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/media?parent=47945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/categories?post=47945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/tags?post=47945"},{"taxonomy":"resource-type","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/resource-type?post=47945"},{"taxonomy":"topic","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/topic?post=47945"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/industry?post=47945"},{"taxonomy":"audience","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/audience?post=47945"},{"taxonomy":"business-size","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/business-size?post=47945"},{"taxonomy":"product-tag","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/product-tag?post=47945"},{"taxonomy":"funnel-stage","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/funnel-stage?post=47945"},{"taxonomy":"region","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/region?post=47945"},{"taxonomy":"pain-point","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/pain-point?post=47945"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/persona?post=47945"},{"taxonomy":"post_features","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/post_features?post=47945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}