Unlawful deduction from wages

An employer is not lawfully permitted to make any deductions from your wages (other than those authorised by statute e.g. tax and N.I.) unless they have the contractual right to do so.

Even if you have caused damage to your employer's property/stock by your carelessness or negligence your employer cannot recover the cost of repair or replacement via deductions from your wages unless they have the contractual right to do so.

Your employer is also required to act reasonably in terms of the deductions made. As such the amount deducted per pay period should be reasonable with respect to your earnings. The employer is not entitled to deduct the whole of your wage for that pay period.

You should be given reasonable notice that the deduction is to occur, when it is to occur and why. Should you dispute either the reason for the deduction or the right of your employer to make the deduction you should raise a grievance to your employer confirming your concerns.

You can bring a claim to the Employment Tribunal that your employer has made an unlawful deduction from your wages whilst remaining in employment - you do not have to resign and then bring a claim. If your employer dismissed you for bringing such a claim, the dismissal is highly likely to be deemed unfair.

Should you believe that your employer has made an unlawful deduction from your wages for a free initial consultation please contact Andrew Moore, andrew.moore@clough-willis.co.uk