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si Ensure your contracts of employment contain a clause authorising deductions.
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• insert a deduction clause into any ad hoc agreements that are made with the worker during their employment, where appropriate.
• Ensure that the wording of the deduction clause clearly specifies the events or circumstances justifying a deduction. Failure to do so may lead a Tribunal or court to find the authorisation too ambiguous or simply did not provide for the incident causing the deduction.
• Where the clause specifies the amount to be deducted, or a formula for deduction, this must represent a reasonable pre-estimate of the employer's loss as opposed to imposing a disproportionate financial penalty on the worker.
a Always obtain the worker's signed consent to contracts or ad hoc agreements.
• Give the worker a copy of the contract or agreement and retain the signed original somewhere safe and accessible. Refer the worker to the relevant provision before making any deduction.
• Meet with the worker to investigate the facts surrounding the proposed deduction. Decide whether the facts justify a deduction, whether the clause provides clear authority and whether the sum to be deducted is proportionate and reflects the employer's loss. Consider whether the deduction could be made in stages or other ways of reducing financial hardship.
• Advise the worker in advance of making any deduction.
If in doubt, always consult your solicitor. This is particularly necessary as the protection from wages legislation allows the employer one bite of the cherry' when docking pay. This means that an employer who is ordered by a Tribunal to repay any deductions to the worker may not pursue other avenues, for example the small claims court, to recover the money originally deducted. Therefore, if the sums involved are substantial, get advice first