When are pay deductions allowed? It’s a question Hannah Ellis, principal and cofounder at The Workplace employment lawyers, and her team get asked a lot.
The Fair Work Act sets out four specific instances when employers are permitted to deduct money from an employee’s wages. But did you know that penalties for illegal pay deductions can rise as high as $54,000 per violation?
Employee wages are under close scrutiny in the wake of the 7-Eleven scandal. This makes it more important than ever to know what you can and can’t deduct for, and how you should proceed if the instance arises. To help you along, Hannah goes through the dos and don’ts of pay deductions, plus a little bonus tip about what happens when you accidentally overpay someone.
Have a legal question? Or a topic you want covered? Let at Hannah know by tweeting to @theworkplace_au or visit her website and blog by clicking here. Check back for more advice on how to handle HR’s most common legal concerns.
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