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Introduction

This Precedent can be used where an employer wishes to make a deduction from an employee’s wages. The accompanying guidance notes provide instructions on the legal requirements and best practices to ensure compliance with Irish employment law.

When are deductions permitted?

Where an employer wishes to make a deduction from an employee’s wages, the employee must consent to this in writing or it must be required by law. Section 5(1) of the Payment of Wages Act 1991 (Ireland) (PWA 1991 (IRL)) states:

1. •

   5.—(1) An employer shall not make a deduction from the wages of an employee (or receive any payment from an employee) unless—

2. •

   (a) the deduction (or payment) is required or authorised to be made by virtue of any statute or any instrument made under statute,

3. •

   (b) the deduction (or payment) is required or authorised to be made by virtue of a term of the employee's contract of employment included in the contract before, and in force at the time of, the deduction or payment, or

4. •

   (c) in the case of a deduction, the employee has given his prior