Glossary

Pay Deduction

The lawful deduction of an employee’s pay. Only under strict circumstances can an employer deduct pay from their workers and the correct procedure must be followed.

An employer can legally deduct the pay of an employee if: the deduction is required by law (e.g. child support, student loan repayments); the employee has agreed to the deduction in writing; they are able to recover an overpayment; or a court orders the deduction to be made.

Unlawful deduction of an employee’s pay can result in action from the Employment Relations Authority.