Key Employment Law Data

Making lawful deductions from wages

  • Be aware that there are specific statutory protections in place to protect workers against having unauthorised deductions made from their wages. Deductions are only permitted in limited circumstances.
  • A deduction arises where the total amount of wages paid to the worker on any occasion is less than the amount properly payable to them. The amount of the shortfall is the deduction and this can also include a complete non-payment of wages.
  • Making a deduction from a worker’s wages is one way you might seek redress where they have breached their contract, for example they have failed to work out their notice period. You may also purport to make deductions for other reasons, including in ...