Legal Article - Employment Law

Payment of Employees and the Contract of Employment

If you wish to make deductions from employees wage packets for discipline reasons, poor workmanship, or to repay loans you must obtain the employee’s written consent in advance of any deduction being made. The contract of employment should be amended to allow deductions, but for existing employees their written consent is needed.

The guaranteed pay arrangements do not apply where employees are absent from work, even where this is perhaps not their fault e.g. heavy snowfall; rail strikes; road accidents. There is no requirement on an employer to pay wages when the person is not at work, unless the contract of employment says so e.g. sick pay when absent because of ill health. Some employers allow staff to count the day of absence as part of their holiday entitlement, or allow them to work extra hours on other days to make up the loss.

Published: 27 May 2011


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