The Court of Appeal has upheld the decision of the High Court in Wilson (HM Inspector of Taxes) v Clayton that a payment from an employer under a compromise agreement should be treated as a termination payment under s.403 of the Income (Earnings and Pensions) Act 2003.
A model contract clause allowing deductions from wages to be made from an employee's pay.
A model contract clause on deductions from salary for unauthorised absence.
A model contract clause on loans during periods of absence.
A model accident loan form for use where a "loans during periods of absence" clause is in the contract of employment to enable the employer to deduct money from the employee's pay in respect of repayment of the loan.
A model form for an employee to authorise deductions from wages.
A model form for an employee to authorise deductions from wages in respect of private mileage.
In Usetech Ltd v Young (Inspector of Taxes)  EWHC 2248 HC, the High Court found that where an individual provided his services through his own service company and an agency all the contracts were subsumed into one. The relevant terms identified and transferred to the notional contract between the individual and the hirer were consistent with those of an employment contract.
In Smith v Kent County Council  EWHC 412 HC, the High Court held that the maximum lawful deduction from a teacher's wages in respect of her absence for one day on strike was 1/365th of her annual salary.
In Guthrie v Scottish Courage Ltd  All ER (D) 15 (Jun) EAT, the Employment Appeal Tribunal upheld a tribunal chair's decision that the employer had made an unlawful deduction from wages when it withheld company sick pay because it had reached a perverse conclusion that the employee's illness was not genuine.
HR and legal information and guidance relating to tax and deductions from pay.