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Defences
to a claim for deductions fall into two broad categories.
An
employer can either argue that the deduction was lawful or he can rely
upon one of the exceptions. To be lawful, a deduction must either be
authorised by a relevant provision in the employee's contract or the
employee must have signified his agreement in writing to the particular
deduction before it was made. Exceptions to the general rule prohibiting
deductions from pay include matters such as recovery of an overpayment
and payment either under an attachment of earnings order or according
to other arrangements (such a union subscriptions). Employers often
set-off amounts from an employees last pay packet or credit transfer.
This is easy to do but is not without risks. If an employer does so
but the deduction is unlawful, he cannot then claim the money back by
any other means.
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Claims
for damages frequently involve an employer's failure to pay wages in lieu
of notice but can include any losses arising as a result of an employers
breach of contract. The employee must prove that the employer breached
a term of his contract and that he suffered losses as a result.
Defences to claims for damages commonly include arguing that;
- The employee is not entitled to payment under their
contract of employment
- The employee has received everything to which they
are entitled
- The employer cannot be held responsible for the particular
loss claimed.
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