Deduction from wages

Employees are protected from unauthorised deductions to their wages however, majority of employment contracts will now contain a clause in relation to deductions.

An employer will already be able to take deductions which are lawful, deductions which are required or authorised by legislation (for example, income tax or national insurance deductions).

Another would be if the employees contract authorises the deduction, this would be subject to the clause in the contract of employment and the employees authorisation of such clause.

When making a deduction, it is best practice to write to the employee to make them aware of your intention to enforce the term within the contract and notice of the deduction to be made. Deductions can be made whereby the employee has been negligent and has incurred cost to the company due to such negligence. Such as damaging a vehicle.

If employees believe they have suffered an unlawful deduction, they may be eligible to bring a claim against their employer therefore ensure you are entitled to make the deduction and the employee is given notice of the deduction.

But, please note, a deduction cannot normally reduce the wage below the National Minimum Wage subject to a number of exclusions.

Call 01480 455500 and ask about our new product HR Manager, an easy to understand, simple to use piece of software that enables you to manage all aspects of HR, Employment Law, Health and Safety and GDPR compliance for your business. HR Manager is FREE and available to all Lawgistics Members.
 

Authors: Roxanne Bradley

Published: 29 Nov 2018

Comments

To ensure you are a real person signing up and to prevent automated signups (spamming) could we ask you to copy the letters and numbers shown below into the box.

(cAse SeNSItivE!)

There are no comments



Share this Article