Contracts can avoid trouble.„
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An employer facing a claim for damages can counterclaim
against the employee in the same proceedings, whereas an employer facing a claim for unlawful deductions from wages cannot.
The Tribunal will decide claims for damages and most claims for unlawful deductions from wages within the framework of the contract of employment. A well-drafted contract will help employers to resist claims.
Employers should always consider the following: • Is there a specific clause allowing deductions to be made, either in the contract or in a separate document?
• Does it cover the deduction I want to make?
• Does the contract clearly define how and when employees are meant to be paid and how benefits in kind are provided?
• Are any of the terms of the contract unnecessary or unhelpful?
• Does the disciplinary, grievance or any other procedure form part of the contract?
• Do statements of policy or practice form part of the contract?