Deductions

What deductions are allowed?

An employer can only make certain deductions from an employee’s pay.  They are:

• required or authorized by law (e.g., income tax, EI, CPP)
• agreed in writing by the employer and the employee
• ordered by the court
• the result of a previous advance of pay to the employee
• a group benefit plan that the employee participates
• an employee-requested contribution toward a savings plan
• authorized by the Minimum Wage Order

An employer cannot deduct any of the employer’s business costs from wages. This includes breakage, damage to company property or loss resulting from a customer leaving without paying.

What about deductions for uniforms?

Employers cannot deduct pay from an employee for uniforms or footwear supplied or required by the employer and which are unique to the employer’s business.  An employer may require a deposit of up to 25 per cent of the cost of a corporately identified uniform. The deposit must be reimbursed when employment ends and the uniform is returned to the employer.  Employers should have employees sign for receipt of various items of the uniform.

Who can I contact for more information?

Sherwood Business Centre
161 St. Peters Road
PO Box 2000
Charlottetown, PE
C1A 7N8
Telephone (902) 368-5550
Fax: (902) 368-5476
Toll Free: 1-800-333-4362