Deductions from Wages

This is a bit of old legislation from 1918 - but it's still law!!

The purpose of the Act is "to prohibit the payment of wages otherwise than in money." But it does more than that.

Essentially, the employer can only make deductions from your wages if:

• it is a statutory requirement (like NIS, Health Surcharge, PAYE)

• there is a Court Order (known as a "Garnishee Order")

• you agree to the deduction (for instance, for your credit union or trade union dues)

• it is provided for by contract or regulation

Here's a list of some of the things that are provided for in the piece of legislation:

• Agreements to pay wages otherwise than in money is illegal

• Agreements as to place or manner of spending wages is illegal

• Employers can provide allowances in addition to wages (i.e. food)

• Worker’s have the right to recover unauthorised deductions

• Deductions from wages can be made for things like tools (but it has to be in your contract)

• Fines for negligence or damage can be made - but only if provided for by contract or regulation .

• Interest on monies advanced is forbidden.

• Penalties - employers can be fined or imprisoned for breaches of the Act.

So if your employer starts dipping their hand into your pay packet - find a union and get some advice. These matters can be taken up.