Wage Deductions

Your employer cannot make deductions from your wages unless:

- your contract of employment entitles him to and you have been given a copy of the relevant terms or a written explanation before any deduction is made; or
- you have agreed to the deduction in writing: or
- they are required by statute (e.g. tax): or
- they are to recover previous salary overpayments: or
- they are as a result of your taking part in strike action: or
- they are made as a result of disciplinary proceedings where those holding the proceedings have the necessary statutory power to order deductions; or
- they are made to meet a court order or tribunal judgement.

If you work in the retail trade and there is a cash or stock shortage your employer can deduct up to 10% of your gross salary so long as the first deduction is made within 12 months of the shortage occurring and he has informed you in writing in advance of the shortfall and of his intention to make the deduction.

If your employer fails to pay you wages which are properly entitled to this will count as an unlawful deduction.

If your employer has made unlawful deductions from your wage then you are entitled to bring a claim for compensation to an employment tribunal. The claim must be brought within 3 months of the last deduction so its important that you contact us as soon as possible.