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Can my employer deduct genuine mistakes leading to loss of revenue from my salary at full retail cost?
I am a hotel employee and my employer has a policy that if a genuine mistake made regarding the sale of goods and/or services it has to be repaid by the employee in full. This is charged to the employee at full retail cost for any loss and, if necessary this is deducted from the individual's salary. Is this an illegal practice? I think it would be better for an employer to deduct the actual 'cost' of a good or service and NOT make a net profit from individual employees.
It is only possible to provide an outline answer. An Employer is permitted, in some cases, to deduct sums from an employees salary provided there is a provision entitling the employer to do this in the contract, signed or advance written agreement.
Otherwise any deduction may be unlawful.
Workers in Retail Employment are a special case where deduction from wages are concerned. An employer can make deduction from wages in respect of 'cash shortage' or 'stock deficiencies' - deduction payable on any one day not to exceed 1/10th gross pay on that day but there is nothing to prevent an employer deducting any outstanding balance on another pay day!
The law relating to unlawful deduction from wages is contained within the Employment Rights Act 1996 Part II, 'Protection of Wages' section 13 to 27 inclusive.
http://www.opsi.gov.uk/acts/acts1996/1996018.htm
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