What deductions from wages may be permitted by the contract of employment?
Examples might include deductions to pay for fines for traffic offences committed when driving company vehicles, or damage to machinery caused by worker negligence. The circumstances in which deductions from wages are permitted must relate to matters arising after the worker has agreed to the deduction. Retrospective agreement (i.e. agreeing to the deduction after the event to which it relates to has already happened) would not make such deductions lawful. The employer must give the worker a written copy of that part of the contract of employment where the worker has agreed to such a deduction. Sometimes employers will insist on written agreement before starting employment to deduct for loss of stock or money or breakages. Although this is allowed, the employer cannot deduct more than 10% of gross pay on any one day.
