Deduction from wages


It is best practice to write to the employee to make them aware of your intention.

Author: Roxanne Bradley
Reading time: 1 minute

This article is 4 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

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.

Roxanne Bradley

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.