HR Tip: Deductions from final wages

HRD & Payroll Solutions continues to bring HR Zone members a range of HR and payroll tips in 2007. A market leader in the provision of HR and Payroll training and nationally recognised professional qualifications, HRD & Payroll Solutions are highly experienced in teaching about common HR and payroll problems. A wide selection of tips, tricks and guidance can be seen below. HR Zone highly recommends that any tips are taken as a starting point for guidance only.

HR Tip:
You may do so only if the employee gives or has given you written permission to make the deduction. If you make the deduction without his written authority it becomes an unlawful deduction from wages. A court would then demand that you repay the money, and you would be unable to recover it in any other way.

I suggest that you ask the employee politely to return the overalls or pay for them. If he refuses you would be entitled to take him to court for the money but I think that would be taking a sledgehammer to crack a walnut. In future I suggest that, when issuing overalls, you have the employee sign to the effect that you may deduct the cost, with a reduction for wear, from final wages. That will keep you in the clear.
Previous HR and Payroll tips:

April 2007
Custom and practice
Disclosing employees' birthdays

March 2007
Making notes in disciplinary proceedings
Discipline and the police
Analysing poor performance
Resignation in a temper
Implied terms of contract

February 2007
Issuing contracts of employment
Unfair and wrongful dismissal
Bullying boss
Persistent absentees

January 2007
Confidential witness statements
Ending a fixed term contract

2006 tips

2005 tips

HR Zone, 26-Apr-2007
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