Don't Get Sherlock'ed – Elementary Guide To Deductions

The recent case of Ridge v HM Land Registry, the EAT confirmed the position that a reduction in an employee's wages to recover an over-payment is a deduction and should be clearly itemised in the employee's payslip in accordance with section 8 of the Employment Rights Act 1996. This may not be the most exciting case on the face of it, but it does raise some interesting points for employers to consider in order to avoid costly mistakes, so keep on reading!

Legal Position

Employee's have the right to receive an itemised statement, which must contain certain specific information, including gross and net salary, as well as details of any deductions and the reason these have been made. Failure to provide a properly itemised statement entitles an employee to bring a claim, which can result in the tribunal issuing a declaration that the payslip does not contain the particulars of a deduction, and ordering the employer to pay the employee the total amount of the