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For
Premium and Premium Plus customers, Graphite provides
a HR Consultation Service. As part of our regular monthly
review in HR e-ssentials Graphite HRM provides you with
an insight into the type of queries we get through this
consultation service. Question:
I have an issue with till shortages in my shop, can
I deduct these from my employees’ wages?
Answer: In the retail industry the
issue around till shortages and how to deal with these
often come up! When considering how to deal with till
shortages it is worthwhile considering the training
and coaching that is provided to new or inexperienced
staff. There may be a case for arranging some on-the-job
training before the busy Christmas period begins.
If you find yourself in a situation where the amount
of mistakes made are unacceptable and the pattern of
till shortages becomes and issue. It is very important
that you understand you legal obligations in relation
to deducting amounts from your staff’s wages.
An employer may not make deductions from an employee's
wage in respect of an act or omission of the employee
e.g. till shortages, unless the following conditions
are satisfied:
- The deduction is required or authorised by a term
in the employee's contract of employment.
- The deduction is of a reasonable and fair amount
having regard to all circumstances, including the
amount of the wages.
- Prior to the act or omission or the provision of
the goods or services, the employee has been given
a copy of the contract containing the term, if it
is a written contract, or in any other case written
notice of the existence and effect of the term.
- Regarding acts or omissions, an employee must be
given written particulars of the proposed deduction
and the reason for it, at least one week prior to
the making of the deduction.
- Regarding a deduction for an employer's compensation
for loss or damage in respect of an act or omission
by an employee, the deduction must not exceed the
amount of the loss or the cost of the damage.
- Regarding a deduction in respect of the provision
of goods or services, the deduction must not exceed
the cost to the employer of the goods or services.
- A deduction must take place within six months of
the act or omission or of the provision of the goods
or services. Where there are likely to be a series
of deductions arising out of the same incident, the
first deduction must be made not later than 6 months
after the provision of the goods or services, or the
act or omission becomes known to the employer.
An employer may only receive a payment in place of
a deduction if the payment also satisfies the above
conditions. Where an employer receives a payment instead
of a deduction, he/she must immediately issue a receipt
to the employee.
To read more about payment of wages and deductions,
see Chapter 12, Payment of Wages, in Personnel Policies
and Procedures - the law in perspective.
Question: There are a number of employees in
our organisation who have not used their full annual
leave entitlement this year. Do these employees simply
forfeit these annual leave days, or must we allow them
to carry over the days into 2007?
Answer: If an employer fails to allow
an employee to use their full annual leave entitlement
within the leave year, then the employer is legally
obliged (with the employees consent) to allow the leave
to be taken within the six months following. According
to the Organisation of Working Time Act, 1997, a payment
in lieu of annual leave is not acceptable and holidays
must be taken within 6 months after the end of the holiday
year.
Therefore an employer may not pay an employee in lieu
of any statutory annual leave entitlement not taken
in the relevant leave year. If an organisation provides
for annual leave in excess of the statutory minimum,
for example 25 days holidays, the employer may pay the
employee for any of the additional 5 days not taken
at the year end.
Many organisations provide a policy whereby a minimum
amount of statutory annual leave can be carried into
the new leave year, for example 3 days, these policies
state that those 3 days must be taken within the first
6 months of the new leave year. Employers must monitor
that this leave is actually taken within this period
At this time of year it is worth reviewing annual leave
taken, and review the level of compliance within the
organisation, so that any necessary remedial action
can be taken before the end of the year.
To read more about holidays, see Chapter 1, Conditions
of Employment and Chapter 10, Holidays, in Personnel
Policies and Procedures - the law in perspective.
We trust that HR e-ssentials
will be of on-going value to you. Please forward it
to anyone else to whom it would be of value, or forward
us their e-mail address so we can add it to our circulation
list. We welcome your feedback on any topics of interest.
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change your contact details, if you move offices or
change your e-mail address.
Disclaimer - This
is not a legal service, all suggestions will be
based on HR best practice.
You should seek independent legal advice before
making any decisions.
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Order a free 7-day evaluation copy of Personnel Policies
and Procedures - The Law in Perspective our leading
employment law manual by contacting Fran Graydon
email: fran.graydon@graphitehrm.com
phone (01) 6627099
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