As an employer, you must be aware of the laws relating to employee wages. Per their employment contracts, they perform a role in your business in return for a payment from you. Therefore, ensuring your employees\u2019 pay is correct is essential. However, there will be times when errors can occur, and you may need to make deductions from your employee’s wages. You must ensure you only deduct from employees’ salaries where you can legally do so, or you can face an unlawful deduction of wages claim at an employment tribunal. When deducting from your employee’s wages, you should also be mindful that this could result in low staff morale and poor productivity. This article will explain some key points you should be aware of when making deductions from your employee’s wage and when you can lawfully do so.<\/p>\n\n\n\n
There are only specific reasons and conditions which allow you as an employer to make deductions from your employee’s wages. These include:<\/p>\n\n\n\n
If your business is in the retail industry, you can deduct your employees’ wages<\/a> where there are mistakes or shortfalls in work. However, this is limited to 10% of their gross pay unless it is taken from their final income when they leave employment with you. <\/p>\n\n\n\n Your business may deduct employee wages for the overpayment. Before making these deductions, you should let your employee know of your mistake as soon as you are aware of it. Overpayments are usually deducted from the employee\u2019s subsequent pay. However, you may both agree to a bank transfer instead. Where the overpayment took place a long time ago, you should offer an alternative form of repayment, including a payment loan. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nDeductions for Overpayment of Wages<\/h2>\n\n\n\n