Illegal Deducation from Wages?

madammim_2 · 20 February 2008 at 10:43PM

Don't know if anyone can help shed some light here. Basically, my 17-year old son had a part-time job at the local ice rink, serving in the cafe, up to mid-January. On his last week there, he and another lad were in charge of the cafe and at the end of the shift instead of one cashing up while one did the bins, they started cashing up, left the cash bag on the counter and went together to do the bins. An opportunist came in and grabbed the bag they had left unattended. This is all verified by the employer and the police and the CCTV bears this out. Apparently the thief is also on the CCTV footage earlier that evening trying his luck on the wrong side of the bar but failing. So, they were 2 young lads who were stupid and failed to carry out the correct procedures. Anyway, DS was already working his notice when this happened and still went in and worked 2 or 3 more shifts that week, then left as planned (on good terms), he was owed £257 in wages, which he believed would come at the end of January. He heard nothing, payday came and went and he was only paid £95.50. We queried this and apparently they wrote to him (although letter never arrived, so they have now faxed a copy to us) which explains that since procedures were not followed, the company's loss of £323 had been split between the 2 employees responsible and deducted from their wages. Now, I know he did not follow the correct procedures, but is this right? can they just deduct £161.50 of his wages without his consent? By the way, the payslip he has now been given shows he has been paid the £257.00 - i.e. it does not show the deduction at all. And, he has not been sent his P45 either. Any comments?

ohreally · 20 February 2008 at 11:24PM

An employer must not make any deductions from the wages of a worker employed by him unless the deduction is required to be made by a statutory provision or the deduction is authorised by a provision in the employees contract of employment.This can be a written term in the contract which the employee is given a copy of prior to the deduction being made, or the employee gives written consent for the deduction to proceed.

He should have been notified in writing before the deduction took place. The power to make the deduction need not be in the actual contract, however if the term is implied the employer should give written notification to the worker before proceeding with any deduction.

What was his contractual position relating to shortages?

madammim_2 · 21 February 2008 at 7:48AM

thankyou, unfortunately it does seem they are right in that case. along with the copy of the letter they have now give us, they have enclosed a page of the company handbook which does state 'Any loss to us that is the result of your failure to observe rules, procedures or instruction, or is as a result of your negligent behaviour or unsatisfactory standards of work will render you liable to re-imburse us the full or part of the cost of the loss' so they do seem to be within their rights to make the deduction. Although surely it should be shown on his wage slip? His gross pay of £257 is shown and no deductions are apparent on there.

G-G_4 · 21 February 2008 at 9:17AM

I think his payslip should show it because surely he has paid tax on the gross income and not on what he actually received?

madammim_2 · 21 February 2008 at 11:36AM

he didnt pay any tax or N.I. as it is only a part-time job and that was all of his earnings from 21st December to 31st Jan, so not enough to have statutory deductions

ohreally · 21 February 2008 at 1:03PM

I'd be questioning the employers role in this as they appear to have left two young workers to their own devices without adequate supervision from a competent person. 17yo's don't necessarily realise the risks around them as they lack the reasoning that comes with maturity - perhaps given the circumstances the employer could review their decision and reach a more favourable outcome for your son, if not writing the theft off, at least offer to have it repaid in small instalments over an extended period of time.

madammim_2 · 21 February 2008 at 1:40PM

I have decided to write to their head office now I have done some hunting around the CAB and ACAS websites. At the very least they are in breach of a rule about itemising the payslip properly as it makes it appear as if he has been paid all of the money. I was worried this might affect things like what the tax office think he has earned. I have sent the letter on a signed for service and have given them 7 days to amend and re-send the payslip to show the deduction and the reason along with the P45 so that at least the paperwork matches what he has got. There might be nothing we can do about the contract saying they can take the money but I agree with you ohreally, it seems harsh, there is a limit to what teenagers in their first jobs are really capable of and he is now saying that it was the duty manager who actually sent them both at once. Unfortunately its a bit like that there. They also didnt seem to have any problem about infringing his confidentiality rights since they discussed this matter with mee on the phone, faxed the letter to my office and allowed me to collect his payslip (which they had failed to send him on 31st January), none of which was with his consent and without checking my identity. just a very unprofessional operation all round. He is best of out of there. I will let you know if we get any kind of result.

kelloggs36 · 21 February 2008 at 1:54PM

What action is being taken by the police to get the money from the perpetrator of the crime itself? As the company have now not suffered a financial loss as they have recovered the money, surely the person if arrested and charged would owe the money to your son and his friend?

madammim_2 · 21 February 2008 at 2:28PM

thats a really good point. the letter just says that the matter is being investigated. The employer told me over the phone that so far the police have not been able to identify him. In my letter I have also asked the employer to supply me with the crime number in case it was needed. I must admit I had not really decided why we might need this. But you have just given me a reason!