Labour Research December 2004

Law Queries

Law Queries: deductions from wages

Q. My employer has sent a memo saying that if I damage or do not return any tools that I take out to do my job he will deduct the cost from my pay, plus a 10% handling charge. Can he do this?

A. Under section 13 of the Employment Rights Act 1996, an employer cannot deduct money from a worker's wages unless it is required to do so by law or it has the consent of the worker in writing. A memo from your employer stating that he will deduct money is not consent.

If you have not signed anything agreeing to the deductions for lost or damaged tools and he does deduct pay, you will be entitled to bring a claim in the tribunal for unlawful deduction of wages.

You do have a duty to take reasonable care in carrying out your work (this is an implied term of all contracts of employment), and this should be sufficient.