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Deducting overpaid wages or employee debt

Employers cannot deduct money from an employee's pay without the employee's written consent. This is prohibited by the Wages Protection Act.

Some employers include a clause in their employment agreements authorising them to deduct any money owed by an employee from that employee's final pay, but the Wages Protection Act allows an employee to withdraw consent to this arrangement by giving two weeks notice of their withdrawal.

If you employee owes you money and will not give written consent for you to deduct it from their pay, you can apply to the Employment Relations Authority for a compliance order for your employee to repay the money owed. Another option is to apply for a summary judgment against your employee.




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