
In different fields or industries, it is common to see material damage or ingredient loss – and it can be because of an accident or the worker’s negligence. It is axiomatic that damage to the needed material will also cause financial loss for the employer. Everyone wants to know: Do these incidents create a breach of contract employment law? Most importantly, can the proprietor deduct money from the worker’s payment or other funds? The Australian legal system is clear on this matter, and being aware of the guidelines will help you manage if something similar happens to you.
Incidentally, keeping in touch with the best employment lawyers Perth will be a good precaution. However, before seeking legal help, it is imperative to know the essential aspects associated with it.
Even the best employment lawyers in Perth are often asked whether the company management can deduct money from the employee’s salary or wages. If they have lost equipment or caused damage, replacing or repairing those damages would take money.
Mostly, the rule of thumb remains that the repair cost will be the employer’s responsibility to bear. If they try to deduct something from the workers’ wages by themselves, they would be in breach of employment contract law, specifically the Fair Work Act (s324). However, the rule isn’t absolute, and there are exceptions.
An employer can rightfully deduct from a worker’s salary only if any statutory provision or court order allows it, and the employee’s specific authority will become null and void in these cases. However, even if permission is available, the deduction can solely be made to pay a third party and only for the employee’s (not the employers’) advantages.
The Fair Work Act (s326) mentions instances where deductions are prohibited in the Australian legislature. On the other hand, the Fair Work Regulations 2009, Reg. 2.12 mentions examples where the deductions can be considered reasonable and wouldn’t cause a breach of employment contract claim.
Garnishee payments are court-mandated payments for a debtor. The most appropriate explanation is if an employee of a company incurs a debt, and any issue arises with the repayment – the court can order the employer to withhold a portion of the employee’s salary to the creditor or the court to satisfy the debt.
The Australian state and commonwealth law offices present garnishee orders with pre-existing limits on the employee’s salary deduction. The Australian Family Court and Tax Office can also issue such orders.
We would like to say that the court can also order an employer to deduct money from a worker’s salary to arrange child support payment. These pay cuts can be made from commissions, salaries, wages, bonuses, and allowances.
Or it can also be from particular measurable termination and retirement payments, payments of labour under work contracts, and remunerations like subcontractor payments and director’s fees. So, now you know the deductions that can be made as an employer. However, it’s better to hire an employment lawyer to get proper solutions in these cases.
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