Each year Wageline receives many calls from employers and employees regarding deductions from pay. In the WA state industrial relations system, it is unlawful for an employer to deduct any money from an employee’s wages unless that deduction has been authorised in writing by the employee, or the deduction is authorised by a WA award or agreement, a court order, or a state or federal law.

A common question that arises from employers is whether they can automatically deduct money from an employee if there has been an overpayment of wages. In this scenario, it is unlawful for an employer to make an automatic deduction and the employer should discuss the overpayment with the employee to see if an arrangement can be reached about recovering the money. Further information regarding deductions from pay can be found on the Deductions from pay page of the Wageline website.