Author: Tim Russell and Lynda Macdonald

When to use this model deductions from wages contract clause

Use this model contract clause in the contract of employment to allow deductions to be made from an employee's pay.

Clause wording

The Employer reserves the right to require you to repay to the Employer, either by deduction from salary or any other method acceptable to the Employer:

  • any losses sustained in relation to the property or monies of the Employer, client, customer, visitor or other employee of the Employer, during the course of your employment caused through your carelessness, negligence, recklessness or through your breach of the Employer's rules or any dishonesty on your part;
  • any damages, expenses or any other monies paid or payable by the Employer to any third party for any act or omission for which the Employer may be deemed vicariously liable on your behalf;
  • any amounts of remuneration, expenses or any other payments (statutory, discretionary, etc) which are overpaid to you whether made by mistake or through any misrepresentation or otherwise;
  • (on termination of employment) any holiday pay paid to you in respect of holiday granted in excess of your accrued entitlement; and
  • any other sums owed to the Employer by you, including, but not limited to, outstanding loans or advances, or relocation expenses.