Can I deduct pay from an employee as a disciplinary sanction?
Employers cannot deduct pay from an employee as a disciplinary sanction unless there is a contractual disciplinary procedure that includes this as a possible sanction for gross misconduct.
Otherwise to take this course of action would be an unlawful deduction from wages. Employers may only deduct money from wages if it is for PAYE and NI, is required by law (e.g. a county court judgment), the employee has agreed to it in writing, or there is a contractual agreement to deduct the money.
It is important to ensure that all employees are treated consistently, as set out in the guidelines to the ACAS Code of practice: Disciplinary and Grievance Procedures and your own in-house policies and procedures.
For more information or to book an HR consultation please contact Karen Scott on 07762 629 448 or get in touch by clicking here.
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