Labour Act, 2003 (Act 651)

Section 70 - Permitted deductions

(1) An employer may, with the consent of the worker, make any of the following deductions from the remuneration of the worker:

(a) any amount due from the worker in respect of contributions to any provident, pension, or other fund or scheme agreed to by the worker;

(b) any financial facility advanced by the employer to the worker at the written request of the worker or any facility guaranteed by the employer to the worker;

(c) any amount paid to the worker in error, as remuneration, in excess of what the worker is legitimately entitled to, from the employer;

(d) on the written authority of the worker, any amount due from the worker as membership fee or contribution to an organisation of which the worker is a member;

(e) for meeting any loss suffered by the employer as a result of the loss of, or damage to, any property or thing used in connection with, or produced by, the employer's business and which is under the control of the worker;

(f) any deduction in compliance with an order made by the Commission.

(2) No deduction shall be made under subsection (1)(f) unless the employer is satisfied,

(a) that the loss or damage has been caused by the worker and the worker is clearly shown to be responsible;

(b) that the amount to be deducted is fair and does not exceed the actual value of the loss or damage suffered by the employer or that the amount represents a fair estimate of the loss or damage suffered;

(c) that the worker has been given reasonable opportunity to show cause why the deductions should not be made; and

(d) that the rate of the deductions is such as to avoid hardship to the worker and his or her dependants.

(3) Where a worker, who is aggrieved by any deduction made by his or her employer under subsection (1), is unable to resolve the matter with the employer, the worker may present a complaint in writing to the Commission.

(4) The Commission shall investigate the complaint and its decision on the matter shall subject to any other law be final.

Reproduced for reference only - this is not legal advice. Legislation can be amended or repealed; verify the current authoritative text with official sources before relying on it. Report a content issue.