Author: Roxanne Bradley
Published: November 29, 2018
Reading time: 1 minute
This article is 4 years old.
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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.