Nov 2014


Irish Employer’s Responsibilities - Payment of Wages Act

The Payment of Wages Act 1991 gives all employees the right to a payslip which shows the gross wages and the details of all deductions. A payslip is essentially a statement in writing from the employer to the employee that outlines the total pay before tax and the details of any deductions from pay. Payslips can be provided in electronic/hard copy format.

Deductions from employees’ pay are allowed when:

• It is required by law i.e. Income Tax, Universal Social Charge (USC) & PRSI

• Provided for in the contract of employment e.g. pension contributions

• Employee has given written consent e.g. trade union subscriptions

• They are to recover an overpayment of wages or expenses

• They are required by a court order e.g. attachment of earnings order

• They arise due to employee being on strike

Where a loss is suffered e.g. employee breakages, till shortages deduction is only allowed where:

• It is allowed for in the employee’s contract of employment

• It is fair and reasonable

• Employee has received written notice

• The amount of the deduction does not exceed the loss or the cost of the service

• The deduction takes place within 6 months of the loss/cost occurring

Failure to pay all or part of the wages due to an employee is considered to be an unlawful deduction and a complaint can be made under the Payment of Wages Act 1991.


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Posted byAudrey MooneyinPayroll Software