Written answers

Tuesday, 8 July 2014

Department of Jobs, Enterprise and Innovation

Employment Rights

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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349. To ask the Minister for Jobs, Enterprise and Innovation the legal basis an employer may have for making certain deductions (details supplied) from an employee's wages; the recourse the employee, who may have since left the company, would have to have the matter pursued through the industrial relations machinery; and if he will make a statement on the matter. [29553/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The Payment of Wages Act 1991 establishes a range of rights for all employees in relation to payment of wages, one of which is protection against unlawful deductions from wages.

However, section 5 of the Act permits an employer to make the following deductions (or receive the following payments) from the wages of an employee:

(a)any deduction (or payment) required or authorised in legislation;

(b)any deduction or payment required or authorised by a term of the employee’s contract; and

(c)any deduction agreed to in writing in advance by the employee.

Special restrictions are placed on employers in relation to deductions (or the receipt of payments from employees) from wages which:

- arise from any act or omission of the employee, or

- are in respect of the supply to the employee by the employer of goods or services which are necessary to the employment.

These restrictions are as follows:

- the deduction (or payment to the employer) must be provided for in the contract of employment in a term, whether express or implied and, if express, whether oral or in writing,

- 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. Where a written contract exists, a copy of the term of the contract which provides for the deduction (or payment) must be given to the employee. In any other case, the employee must be given written notice of the existence and effect of the term.

- the amount of the deduction (or payment to the employer) must be fair and reasonable having regard to all the circumstances including the amount of the wages of the employee,

- any deduction in respect of goods and services supplied or provided should not exceed the cost to the employer of the goods or services,

- the deduction (or payment), must be made no later than 6 months after the act or omission became known to the employer or no later than 6 months after the provision of the goods or services. However, if a series of deductions (or payments) are to be made in respect of a particular act or omission or in respect of the provision of goods and services, the first deduction (or payment) in the series must be made within the 6 month period.

In addition, any deduction (or payment to the employer) arising from any act or omission of an employee, must satisfy the following conditions:

- the employee must be given particulars in writing of the act or omission and the amount of the deduction (or payment) at least one week before the deduction (or payment) is made,

- if the deduction (or payment) is in respect of compensation for loss or damage sustained by the employer as a result of an act or omission of the employee, the amount of the deduction should not exceed the amount of the loss or the cost of the damage.

The Payment of Wages Act provides that, where an employee considers that there may have been a contravention of the Act, the employee may submit a complaint to a Rights Commissioner within 6 months of the date of the alleged contravention (this may be extended to 12 months where a Rights Commissioner considers that there were exceptional circumstances for the delay in submitting the claim). The Workplace Relations Customer Service Section of the National Employment Rights Authority (NERA) provides information on employees’ rights and how to obtain redress if an employee considers that their employment rights may have been infringed. NERA can be contacted at Lo-call: 1890 80 80 90 or via its website www.workplacerelations.ie. The Single Complaint Form for submitting complaints regarding breaches of employment rights is also available at . An explanatory booklet on the Payment of Wages Act is also available on that website.

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