Can employers make deductions from an employees wages?
Yes, but only certain kinds of deductions can be made: • Statutory Deductions Federal and provincial statutes sometimes require an employer to withhold or make deductions from an employee’s wages. For example, employers are required to make deductions for income taxes, employment insurance premiums and Canada Pension Plan contributions. An employer isn’t permitted to deduct more than the law says and can’t legally make deductions if the money isn’t then forwarded to the proper authority. • Court Order A court may order an employer to make a deduction from an employee’s wages if the employee owes money either to the employer, or to someone else. • Written Authorization An employer may also deduct money from an employee’s wages with the employee’s written authorization. An oral authorization is not enough. The employee’s written authorization must state: • that a deduction from wages is allowed • the amount of money to be deducted-or it must provide a method of calculating the specific a
