NMWM11065 - Deductions and payments from workers: contractual deductions or payments: for conduct relating to ‘any other event�
Relevant legislation
»Ê¹ÚÌåÓýapp legislation that applies to this page is as follows:
- National Minimum Wage Regulations 2015, regulations 12(2)(a)
When considering contractual deductions and payments from workers it is necessary to consider both:
- conduct and discipline (NMWM11060), and
- conduct relating to ‘any other event�.
Conduct relating to ‘any other event�
A deduction made from a worker’s pay or a payment made by the worker to his employer which is both:
- a specified contractual liability of the worker ANDÌý
- in respect of the worker’s conduct relating to ‘any other event�
will not reduce National Minimum Wage pay.
»Ê¹ÚÌåÓýapp circumstances relating to the deduction or payment must be specified in the worker’s contract (i.e. the worker must be contractually liable) and the clause must be in respect of a voluntary deduction or payment (for example, something not in connection with the employment NMWM11100) which is triggered by ‘any other eventâ€� which has some relationship to the voluntary conduct of the worker, such as a choosing to resign. Examples of conduct relating to ‘any other eventâ€� are described in NMWM11066.
Where deductions are being made from workers it is reasonable to expect the employer to provide evidence to a NMW Compliance Officer regarding the exact circumstances of such deductions. If an employer suggests that a deduction is stipulated as conduct relating to ‘any other event� in a worker’s contract (written or otherwise) and the clause makes the worker contractually liable for a deduction, then it is reasonable to see some evidence to expressly support this.
See NMWM11070 if an employer makes deductions or payments as specified in a worker’s contract which are not related to conduct and discipline or conduct relating to ‘any other event�.