Fair Work has updated the rules about deductions from employee wages.
FairWork says: From 30 December 2023, new rules apply for employee authorised deductions from pay that are:
– either one-off or recurring
– for specific amounts or for amounts that change from time to time.
These are called employee authorised deductions and the employee needs to give their permission in writing. Examples of these deductions include payments to a health fund or union fees.
Employers can only make employee authorised deductions where the deductions are mainly for the employee’s benefit. Extra rules about when employee authorised deductions are allowed also apply if they:
– are for an amount that can change from time to time
– directly or indirectly benefit the employer (or someone related to them).
Deductions have to be recorded and kept in an employee’s records. Pay slips also have to say the:
– amount of any deduction
– name, or name and number of the fund or account the deduction was paid into.
Awards and registered agreements can also allow for deductions from pay to be made in some circumstances.
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Details and links: https://www.fairwork.gov.au/pay-and-wages/deductions-and-related-issues
