The Payment of Wages Act 1991 prevents employers from making deductions from wages or from receiving payment from their workers unless:

 

  • required to do so by law (e.g. PAYE or PRSI)
  • the deduction is provided for in the contract of employment (e.g. if the contact requires an employee to make pension contributions or to pay for till shortages etc.)
  • the deduction is made with the written consent of the employee (e.g. private health insurance payments etc.)

 

However, if the deduction or the receipt of payment:

  • arises from any act or omission of the employee (e.g. breakages)

Or

  • is in respect of the supply to the employee by the employer of goods or services that are necessary to the employment (e.g. uniforms supplied)

then, it must be authorised by virtue of a term in the employee’s contract of employment

and

the employee must be given at some time prior to the act or omission, or the provision of the goods or services, written details of the terms in the contract of employment governing the deduction or payment to the employer from wages or written notice that such a term exists

and

the amount of the deduction must be fair and reasonable having regard to all the circumstances including the amount of the wages of the employee

and

if the deduction relates to an act or omission by the employee, the employee must be given written details of the act or omission at least one week before the deduction is made.