Deductions from wages (other than those required by law) are not permitted without the written consent of the employee.

The deductions required by law which an employer makes from the wages of an employee are as follows:

• Unemployment Insurance Fund (UIF)
• PAYE (tax)
• Any deduction ordered by a court

The lawful deductions which an employer can make from the wages of an employee, if the employee instructs the employer in writing to make the deduction, are as follows:

• Trade union subscriptions
• Medical aid contributions
• Pension or provident fund
• Money to pay back a housing loan or other loan from the employer
• Money for food and accommodation
• For loss or damages suffered at work provided the employee has been given a hearing to explain the facts and has agreed in writing to such deduction. (Section 34 of the BCEA)
  The amount that can be deducted can be equal to (but not more than) 25% of the normal wage to offset losses.

Often employers also make unlawful deductions from employees’ wages. Examples are when:

• The employer says there were shortages in a till and the employee has to pay back the shortages
• The employee breaks something at work
• The employee owes the employer money, but did not agree that the amount owing should be deducted
• The employee is off sick and the employer deducts money for the days not worked
• The employee is absent from work without leave, for example, family responsibility leave.

If an employer wants to deduct a fine from an employee’s wage, to compensate the employer for loss or damage, the employer can only deduct the fine if:

• The loss/damage happened during the ‘course and scope of employment’
• The employee was at fault
• A fair hearing was held to give the employee a chance to state her or his case
• The employer does not deduct more than the actual value of the loss or damage
• The total amount deducted is no more than 25% of the employee’s wages
• The employee gives consent in writing

(See: Problem 1: Money Is Deducted from an Employee’s Wages)