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Unauthorised deductions

Overview

The Payment of Wages Act, 1991 provides that deductions from an employee's wages may only be made if required or authorised by legislation. Deductions may be made where they are expressly provided for in the contract of employment, or where they are specified in the employee's handbook or where the employee gives prior written consent to the deductions. However, an employer is legally entitled to make some deductions without consent, for example if he/she has accidentally overpaid an employee. 

Some of the deductions which may be outlined in the contract of employment are:

  • PAYE
  • PRSI
  • VHI
  • sports and social contributions
  • pension contributions.