Unauthorised deductions from pay

New and updated

• Date:

  1 October 1996

  Type:

  Employment law cases

  Deductions from wages: Employer entitled to vary collectively-agreed bonus scheme

  An employer was contractually entitled to make changes to an incentive bonus scheme without the consent of employees individually or their trade union representatives, holds the EAT in Airlie and others v City of Edinburgh District Council.

• Date:

  15 November 1993

  Type:

  Employment law cases

  Wages Act: Tribunal must decide contractual entitlement

  Where employees argue that they have not received the full pay to which they are entitled and that this amounts to an unlawful deduction under the Wages Act, the industrial tribunal must first determine any dispute about what wages are properly payable under the contract, the EAT confirms in Yemm and others v British Steel plc.

• Date:

  1 July 1993

  Type:

  Employment law cases

  Discount Tobacco & Confectionery Ltd v Williamson

  In Discount Tobacco & Confectionery Ltd v Williamson [1993] IRLR 327 EAT, the EAT upheld an employment tribunal's decision that in order for a deduction to be lawful, it is not sufficient that the employee gives written consent before the deduction is made. The employee's written agreement must have been given before the conduct or event giving rise to the deduction.

• Date:

  1 January 1993

  Type:

  Employment law cases

  Fairfield Ltd v Skinner

  In Fairfield Ltd v Skinner [1993] IRLR 4 EAT, the EAT held that there must be justification for making a deduction from wages, even when authority has been given in the contract.

• Date:

  15 March 1992

  Type:

  Employment law cases

  Wages Act: Agreement did not authorise deduction of training costs

  An agreement under which an employee was liable to repay a proportion of a training course fee to his employer if his employment terminated within a certain period did not specifically authorise repayment by way of a deduction from wages, holds the EAT in Potter v Hunt Contracts Ltd.

• Date:

  1 April 1986

  Type:

  Employment law cases

  Coales v John Wood & Co (Solicitors)

  In Coales v John Wood & Co [1986] IRLR 129 EAT, the EAT held that the obligation on an employer to provide an employee with a written itemised pay statement at or before the time at which any payment of wages or salary is made is an absolute one and is not conditional upon the employee requesting such a statement.

• Date:

  1 October 1978

  Type:

  Employment law cases

  Milsom v Leicestershire County Council

  In Milsom v Leicestershire County Council [1978] IRLR 433 IT, the Industrial Tribunal held that a pay statement must detail the amount of each variable deduction and the purpose for which it is made, and not merely label an item "miscellaneous deduction".