Unlawful deductions
by Philip
A question that is regularly asked is can an employer not pay an employee if that employee is in breach of contract. The question normally arises when the employment relationship ends.
The position is clear. Unless the employer has signed authority from the employer to authorise the deduction then no deduction is allowed.
The case reported here illustrates the point. An employment agency worker agreed with an employment agency to work for a client for a fixed term from January to May.
The worker only completed two days of the assignment and then left. The agency did not pay the worker on the basis that the client had not paid them and they believed the worker was in breach, having left 2 days into employment.
The EAT held that the failure to pay the wages amounted to an unlawful deduction as there was no lawful basis to withhold the sum due.
Similar Posts: