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Chapter 6
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Problem 1: Money is deducted from an employee’s wages

Jerry is a cashier who works for Speedy Garage. He comes to you with a problem. At the end of every day the money is cashed up by the cashier. On the days when the money is short this is noted in a book. At the end of the week, all these shortages are counted up and the total amount is deducted from Jerry’s wages. From the pay slips that he brings to you, it seems that every week deductions are made for shortages.

WHAT DOES THE LAW SAY?

The law says that an employer cannot make deductions from the wages of an employee except in certain circumstances.

WHAT CAN YOU DO?

You can take the following steps:

  1. Find out whether the employee is covered by a Bargaining Council Agreement or Wage Determination, or other agreement about terms and conditions of employment. In this case Jerry is covered by the Bargaining Council Agreement for the motor industry. This agreement says that any deductions from wages are unlawful. (See How do you know which law applies to an employee?)
  2. Contact the manager of the garage and ask him or her for the reasons for the deductions. Explain that such deductions are unlawful. Quote Section 49 of the BCEA.
  3. Write a letter to the employer giving all the details of the deductions, the weeks, the amounts deducted, and the amount the employee is claiming.
  4. If the employer will not pay back the amounts owing to Jerry, write a letter of referral to the Bargaining Council asking them to investigate the problem. Explain to them what steps you have already taken to try and sort out the problem. Alternatively, refer a dispute to the CCMA in terms of Section 73A of the BCEA for breach of Section 34 of the BCEA. This process involves sending the CCMA Referral of Dispute Form 7:11 to the employer and then sending it to the CCMA and ticking Section 73A under ‘Nature of Dispute.’
  5. It should be noted that if losses are made to the employer because of the negligence or misconduct of the employee, a deduction of up to 25% of the employee’s wage can be made to repay for the losses, provided the employee has agreed to this and provided the employee has had an opportunity to explain their conduct in a disciplinary hearing. (See Deductions)