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Deducting employees mistakes from their pay

  • Fellow PM.Dip
  • 37 posts
  • # 78640

This is an intresting one!


One of my customers has advised that he would like a mistake that his employee has made (About £60) deducted from their salary this month. It is something that he says the employee has agreed to.


I have 2 questions:
1. Is this legal
2. Assuming it is do I deduct the amount at source (IE: Before tax and NI is calculated)

Many thanks for your help    
   
  • 698 posts
  • # 78647

Hi Aaron

First things first the easy bit if from the sounds of what you are saying the deduction should be a net pay deduction i.e. deducted after tax and NI have been calculated.

The legality of the deduction is a bit of an issue in that if the employee signs to say they agree to the deduction then there is no problem at all however if they just do it verbally and there is nothing in the contract of employment to support the deduction then they might be on a sticky wicket if the employee later contests it.

The best way to proceed is to ensure it is written down the employer and the employee both sign the paperwork to show it is agreed and why it is being deducted. It would also be good if a witness was also able to sign the same statement to show the employee was not coerced into signing it by the employer.

Kind regards
Stuart

  • Forum Moderator, South East & Greater London Regional Chairman

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David
  • Fellow PM.Dip
  • Practice Licence
  • 424 posts
  • # 78770

Hi Aaron

Have a read of this page it may well help with your situation.

http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_175878


Best of luck

David
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