Restrictions on Employers Making Deductions?

The Act places special restrictions on employers in relation to deductions or receipt of payments from wages which –

• arise from any act or omission of the employee such as till shortages, breakages or spillages, poor quality, etc;
• Are in respect of the supply of goods and services by the employer which are considered necessary to the employment such as the provision or cleaning of uniforms.
• Any deduction or payment from wages for the reasons above must satisfy the following conditions –
  • the deduction or payment must be provided for in the contract of employment whether express or implied and, if express, whether oral or in writing;
  • the amount of the deduction or payment from wages must be fair and reasonable having regard to the circumstances, including the wages of the employee;
  • the employee must be given at some time prior to the act or omission or provision of goods and services, written details of the terms in the contract of employment governing such deductions. If this exists in a written contract of employment, this must be provided. In any other case, the employee must be given written notice of the existence and effect of the term

Can The Employer Deduct Wages For Disciplinary Reasons?

• Yes. The Act allows that a disciplinary fine, where provision for such is made in the contract of employment, may be deducted.
• This, of course, assumes that any such penalty is in line with the collective disciplinary and grievance procedure and that the employee concerned has had full access to representation, opportunity to defend themselves and that all stages of the procedure have been utilised.