This information is only relevant to employers and employees in the WA state industrial relations system.

About this page

• This page provides details on the state system provisions prohibiting employers unreasonably requiring employees to spend their money in a particular way, or pay back their wages to the employer or another person (sometimes known as ‘cash backs’).
• Employees who wish to make a complaint about underpayment should visit the Making a Complaint about unpaid wages or entitlements page.

An employer is prohibited from directly or indirectly requiring an employee to spend, or pay to the employer or another person, an amount of the employee’s money or the whole or any part of an amount payable to an employee in relation to the performance of work if:

• the requirement is unreasonable in the circumstances; and
• in the case of a payment, the payment is directly or indirectly for the benefit of the employer or a party related to the employer.

A prospective employer is not able to directly or indirectly require a prospective employee to spend, or pay to the employer or another person, an amount of the prospective employee’s money if:

• the requirement to pay money is in connection with employment or potential employment of the prospective employee by the prospective employer;
• the requirement is unreasonable in the circumstances; and
• in the case of a payment, the payment is directly or indirectly for the benefit of the prospective employer or a party related to the prospective employer.

To illustrate, it is unlawful for:

• a prospective employer to require a prospective employee to pay them money in order to obtain employment;
• an employer to ask an employee to pay back some of their wages to the employer in order to keep their job; and
• an employer to require an employee to spend part of their pay on goods the employer sells to the public.

Asking an employee for any amount to be spent, or money to be paid, in a particular way that involves undue influence, duress or coercion, is also prohibited.

These provisions do not prevent legitimate, mutual agreements being reached between an employer and an employee for overpayments to be paid back by an employee to the employer.

Enforcement action can be taken in the Industrial Magistrates Court (IMC) against an employer who contravenes these provisions. If the IMC determines that an employer has contravened these provisions, it may order the employer to pay to the employee or prospective employee compensation for any loss or injury suffered as a result of the contravention.

The IMC may also impose a penalty of up to $13,000 (or up to $130,000 if it is a serious contravention) for individuals or a penalty of up to $65,000 (or up to $650,000 in the case of a serious contravention) for bodies corporate, for a contravention of these provisions.

In addition, the Minimum Conditions of Employment Act (MCE Act) provides that a term of a WA award, industrial agreement or contract of employment has no effect to the extent that the term permits an employer to require an employee to spend or pay an amount of money in contravention of the MCE Act provisions or requires an employee to spend or pay an amount of money if the requirement would contravene the MCE Act provisions if it had been made by the employer.