Every employer must make sure that the salary, wages and allowances of an employee together with any other non-cash remuneration are stipulated in the contract of employment.
Frequently Asked Questions (FAQs)
Am I, as an employer, allowed to deduct money from an employee’s salary without his/her consent?
No, an employer can only make a deduction with the consent of the worker.
What are some of the permitted deductions?
The permitted deductions include the following:
- The workers’ contributions to any provident, pension, or other fund or scheme agreed to by the worker.
- 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.
- Any amount paid to the worker in error, as remuneration, in excess of what the worker is legitimately entitled to, from the employer.
- 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.
Can an employee make a complaint when there are unlawful deductions?
A worker can make a complaint in writing to the Labour Commission if he/she is aggrieved by any deductions by the employer after they have not been able to resolve the matter. The Labour Commission shall investigate the complaint and its decision on the matter shall be final.
Take our Salary Survey and you could win a cash prize.