Summary

This topic outlines the rules set out in the Employment Rights Act 1996 (ERA) governing deductions from pay. The rules governing deductions made in accordance with attachment of earnings orders or deductions of earnings orders are set out in the Attachment of Earnings topic.

Employers' Duties

Employers must:

  • not make unlawful deductions from employees’ wages

  • understand the regulations regarding statutory deductions

  • obtain the necessary written permission from workers before making any non-statutory wage deductions

  • only deduct up to 10% of gross wages due to a worker in the retail trade in respect of cash shortages or stock shortfalls in any pay period.

Employees' Duties

Employees must:

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