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ARTICLE · 30 SEPTEMBER 2015

Deductions from wages - a risky business

Carroll & O'Dea
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Most employers are not fully aware of the circumstances which do entitle them to make deductions from an employee's wage.

AustraliaEmployment and HR
Peter Punch
Peter Punch
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Most employers are not fully aware of the circumstances entitling them to make deductions from an employee's wage particularly in situations where the employer seeks to recover money they believe is owed to them.

The Fair Work Act 2009 (Cth) (the "Act") contains specific provisions regarding circumstances of when an employer may make deductions from an employee's payment.

Unlawful deductions can expose an employer to civil penalties.

Section 323 of the Act requires an employer to pay an employee the amount owing to him/her in full in relation to work performed. The exceptions to this obligation are contained in section 324 of the Act which permits an employer to make deductions where (S.324(1)):

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