Security firm unlawfully deducts wages from employee

by Carolyn Heaton - Morrison Kent

Satish Kalera was employed by a security services firm, Simply Security, between February and May 2017. During that time he managed to have two minor accidents while driving the company’s vehicles.

Simply Security decided that Mr Kalera was responsible, and notified him that they would make deductions from his wages for the cost of repairs. From April to May they made deductions totalling nearly $1,800.

In its determination, the Employment Relations Authority said there was no dispute that Mr Kalera had provided his consent to deductions being made from his wages, both through his individual employment agreement and through the company’s vehicle policy. However, the Authority said that an employee can vary or withdraw consent for the making of deductions by giving the employer written notice to that effect. “Mr Kalera clearly and unequivocally withdrew his consent to deductions being made from his salary prior to the deductions commencing…. In addition, the deductions which were made from Mr Kalera’s salary were unreasonable”. The deductions made by Simply Security from Mr Kalera’s wages were found to be unlawful and a breach of the Wages Protection Act 1983.

We have the experience to be able to help you navigate tricky employment issues like these, avoid unnecessary Employment Relations Authority investigations, and achieve a fair and lawful outcome.

If you would like any further information or advice about these matters, please contact Wellington based employment lawyer 
Carolyn Heaton or the Morrison Kent Wellington office (04) 472-0020. 

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