I'd disagree that this is common practice in the UK. I've been working in software development roles in the UK for over 20 years, and I've never had a clause like that in any of my contracts

Upvoted comment on the original question says "Definitely not common in UK" (with over 11 upvotes), most upvoted answer here says "This is normal in the UK". Who the heck is right ?

If you are paid on the 25th, you are being paid for a few days you have not worked yet, correct. Now look at it the other way around: If you are paid on the 25th, you have worked for nearly 20 days without getting any pay for that yet.

Again if you read my answer, I say it is common practice, even though not common within the IT world and it is nothing to worry about. Both answers are correct, it isn't common in IT for this to happen, but it is common and normal in the UK for other businesses to do so...the main question is whether this is something to be concerned about and it isn;t

@NotTelling it is all a matter of perspective yes. Someone else can explain to him that instead, they always pay 1 week behind, to ensure at the end of their employment there is some extra to be used for any use of holiday above what had been accrued. So theoretically you have been paid for the first week but not the last week of the month. It is just a matter of perspective

Never heard of this in the UK (source: UK national, worked in the UK for 10 years, now head of recruitment)

@WorkerWithoutACause I've seen it happen often, even if not within the industry (source: EEA worker in the UK for 7 years, worked in production, where 1 company did this, cleaning, where both companies did this, retail where the company did this and call center where 1 company did this. Relatives and friends, mainly in retail, have experienced this in most companies they have worked for)

@JonH remember that comments cannot be downvoted. So their amount of votes isn't as meaningful.

Are employers required to pay interest on that withheld week if and when the employee receives it? I should hope so.

1 pay period in arrears is fairly common for non-salaried work in the US. Also, it's common to have a ~2 week pay period (biweekly or bimothly).

I'm in the UK, and 21 years ago, my first temporary job in a warehouse did this - I was paid weekly, but worked a week in arrears. So each week I received the previous week's pay. It's almost unheard of in IT as a field where staff are more likely to be paid monthly, but it's not unknown among less-skilled workers.

Not sure about "common" these days but it used to be. I think OP is "working a week in hand" and it was explained to them by someone who doesn't understand the process themselves. Or the business itself doesn't understand it but the owner once heard from a guy down the pub that this was what Real Businesses Like Theirs did.

@Ben My husband and my mother, who work at different factories, get paid on Wednesday for work done the week before. Similar to OP, but 5 days instead of a week. When I worked in a supermarket, I got paid 4-weekly, but on Thursday except the hours I worked in that week didn't count yet, 4 days "in hand". Now, I've worked two jobs as a software engineer. I now get paid halfway the month for the past half of the month and the future half of the month. I asked around more and clauses like these seem, as fireshark519 says, indeed common in the UK (and other EU countries), just not in software.

I wouldn't sign a contract that says they want to withhold payment for the first week. It might be company policy, but it goes against MY policy. At the end of the day, it's a show of lack of trust from them towards you, and that's a place I'm not willing to work at.

I disagree that this is normal, I am in the UK and have never heard of this and have worked at Tesco as you mentioned and now as a developer. My experience has been that if you started in the middle of a month for example, on your first payslip you would simply be paid for the time you have worked since your starting date. Then in your next full month you would be paid your regular monthly salary.

@Luke for example, payday for Tesco will be next week on Friday, employees will be paid for hours worked up until today (Thursday) the week before. You always work a week in hand. Source: My wife works at Tesco....I've worked at Tesco....my sister-in-law works at Tesco...

@fireshark519 Perhaps I am mistaken then, it has been some time since I worked there.

Arrears. I learned a new word today.

Interesting. In the US, my jobs have paid me 100% in arrears. That means when I start someplace new, I have to wait about three weeks to get my first paycheck. Of course that also means that my last paycheck from my old place comes to me a week or two after I've started at the new place.

@JonH this was definitely common in the UK in my parents day... but I've never experienced it while working in the UK. maybe a generational thing?