| Employment Rights Act 1996 |
| 1996 Chapter 18 - continued |
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| Limits on method and timing of payments. | 20. - (1) Where the employer of a worker in retail employment receives from the worker a payment on account of a cash shortage or stock deficiency, the employer shall not be treated as receiving the payment in accordance with section 15 unless (in addition to the requirements of that section being satisfied with respect to the payment) he has previously-
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| | (a) notified the worker in writing of the worker's total liability to him in respect of that shortage or deficiency, and |
| | (b) required the worker to make the payment by means of a demand for payment made in accordance with the following provisions of this section. |
| | (2) A demand for payment made by the employer of a worker in retail employment in respect of a cash shortage or stock deficiency-
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| | (a) shall be made in writing, and |
| | (b) shall be made on one of the worker's pay days. |
| | (3) A demand for payment in respect of a particular cash shortage or stock deficiency, or (in the case of a series of such demands) the first such demand, shall not be made-
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| | (a) earlier than the first pay day of the worker following the date when he is notified of his total liability in respect of the shortage or deficiency in pursuance of subsection (1)(a) or, where he is so notified on a pay day, earlier than that day, or |
| | (b) later than the end of the period of twelve months beginning with the date when the employer established the existence of the shortage or deficiency or (if earlier) the date when he ought reasonably to have done so. |
| | (4) For the purposes of this Part a demand for payment shall be treated as made by the employer on one of a worker's pay days if it is given to the worker or posted to, or left at, his last known address-
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| | (b) in the case of a pay day which is not a working day of the employer's business, on the first such working day following that pay day. |
| | (5) Legal proceedings by the employer of a worker in retail employment for the recovery from the worker of an amount in respect of a cash shortage or stock deficiency shall not be instituted by the employer after the end of the period referred to in subsection (3)(b) unless the employer has within that period made a demand for payment in respect of that amount in accordance with this section.
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| Limit on amount of payments. | 21. - (1) Where the employer of a worker in retail employment makes on any pay day one or more demands for payment in accordance with section 20, the amount or aggregate amount required to be paid by the worker in pursuance of the demand or demands shall not exceed-
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| | (a) one-tenth of the gross amount of the wages payable to the worker on that day, or |
| | (b) where one or more deductions falling within section 18(1) are made by the employer from those wages, such amount as represents the balance of that one-tenth after subtracting the amount or aggregate amount of the deduction or deductions. |
| | (2) Once an amount has been required to be paid by means of a demand for payment made in accordance with section 20 on any pay day, that amount shall not be taken into account under subsection (1) as it applies to any subsequent pay day, even though the employer is obliged to make further requests for it to be paid.
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| | (3) Where in any legal proceedings the court finds that the employer of a worker in retail employment is (in accordance with section 15 as it applies apart from section 20(1)) entitled to recover an amount from the worker in respect of a cash shortage or stock deficiency, the court shall, in ordering the payment by the worker to the employer of that amount, make such provision as appears to the court to be necessary to ensure that it is paid by the worker at a rate not exceeding that at which it could be recovered from him by the employer in accordance with this section.
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| Final instalments of wages. | 22. - (1) In this section "final instalment of wages", in relation to a worker, means-
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| | (a) the amount of wages payable to the worker which consists of or includes an amount payable by way of contractual remuneration in respect of the last of the periods for which he is employed under his contract prior to its termination for any reason (but excluding any wages referable to any earlier such period), or |
| | (b) where an amount in lieu of notice is paid to the worker later than the amount referred to in paragraph (a), the amount so paid, |
| | in each case whether the amount in question is paid before or after the termination of the worker's contract.
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| | (2) Section 18(1) does not operate to restrict the amount of any deductions which may (in accordance with section 13(1)) be made by the employer of a worker in retail employment from the worker's final instalment of wages.
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| | (3) Nothing in section 20 or 21 applies to a payment falling within section 20(1) which is made on or after the day on which any such worker's final instalment of wages is paid; but (even if the requirements of section 15 would otherwise be satisfied with respect to it) his employer shall not be treated as receiving any such payment in accordance with that section if the payment was first required to be made after the end of the period referred to in section 20(3)(b).
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| | (4) Section 21(3) does not apply to an amount which is to be paid by a worker on or after the day on which his final instalment of wages is paid.
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Enforcement |
| Complaints to industrial tribunals. | 23. - (1) A worker may present a complaint to an industrial tribunal-
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| | (a) that his employer has made a deduction from his wages in contravention of section 13 (including a deduction made in contravention of that section as it applies by virtue of section 18(2)), |
| | (b) that his employer has received from him a payment in contravention of section 15 (including a payment received in contravention of that section as it applies by virtue of section 20(1)), |
| | (c) that his employer has recovered from his wages by means of one or more deductions falling within section 18(1) an amount or aggregate amount exceeding the limit applying to the deduction or deductions under that provision, or |
| | (d) that his employer has received from him in pursuance of one or more demands for payment made (in accordance with section 20) on a particular pay day, a payment or payments of an amount or aggregate amount exceeding the limit applying to the demand or demands under section 21(1). |
| | (2) Subject to subsection (4), an industrial tribunal shall not consider a complaint under this section unless it is presented before the end of the period of three months beginning with-
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| | (a) in the case of a complaint relating to a deduction by the employer, the date of payment of the wages from which the deduction was made, or |
| | (b) in the case of a complaint relating to a payment received by the employer, the date when the payment was received. |
| | (3) Where a complaint is brought under this section in respect of-
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| | (a) a series of deductions or payments, or |
| | (b) a number of payments falling within subsection (1)(d) and made in pursuance of demands for payment subject to the same limit under section 21(1) but received by the employer on different dates, |
| | the references in subsection (2) to the deduction or payment are to the last deduction or payment in the series or to the last of the payments so received.
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| | (4) Where the industrial tribunal is satisfied that it was not reasonably practicable for a complaint under this section to be presented before the end of the relevant period of three months, the tribunal may consider the complaint if it is presented within such further period as the tribunal considers reasonable.
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| Determination of complaints. | 24. Where a tribunal finds a complaint under section 23 well-founded, it shall make a declaration to that effect and shall order the employer-
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| | (a) in the case of a complaint under section 23(1)(a), to pay to the worker the amount of any deduction made in contravention of section 13, |
| | (b) in the case of a complaint under section 23(1)(b), to repay to the worker the amount of any payment received in contravention of section 15, |
| | (c) in the case of a complaint under section 23(1)(c), to pay to the worker any amount recovered from him in excess of the limit mentioned in that provision, and |
| | (d) in the case of a complaint under section 23(1)(d), to repay to the worker any amount received from him in excess of the limit mentioned in that provision. |
| Determinations: supplementary. | 25. - (1) Where, in the case of any complaint under section 23(1)(a), a tribunal finds that, although neither of the conditions set out in section 13(1)(a) and (b) was satisfied with respect to the whole amount of the deduction, one of those conditions was satisfied with respect to any lesser amount, the amount of the deduction shall for the purposes of section 24(a) be treated as reduced by the amount with respect to which that condition was satisfied.
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| | (2) Where, in the case of any complaint under section 23(1)(b), a tribunal finds that, although neither of the conditions set out in section 15(1)(a) and (b) was satisfied with respect to the whole amount of the payment, one of those conditions was satisfied with respect to any lesser amount, the amount of the payment shall for the purposes of section 24(b) be treated as reduced by the amount with respect to which that condition was satisfied.
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| | (3) An employer shall not under section 24 be ordered by a tribunal to pay or repay to a worker any amount in respect of a deduction or payment, or in respect of any combination of deductions or payments, in so far as it appears to the tribunal that he has already paid or repaid any such amount to the worker.
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| | (4) Where a tribunal has under section 24 ordered an employer to pay or repay to a worker any amount in respect of a particular deduction or payment falling within section 23(1)(a) to (d), the amount which the employer is entitled to recover (by whatever means) in respect of the matter in relation to which the deduction or payment was originally made or received shall be treated as reduced by that amount.
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| | (5) Where a tribunal has under section 24 ordered an employer to pay or repay to a worker any amount in respect of any combination of deductions or payments falling within section 23(1)(c) or (d), the aggregate amount which the employer is entitled to recover (by whatever means) in respect of the cash shortages or stock deficiencies in relation to which the deductions or payments were originally made or required to be made shall be treated as reduced by that amount.
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| Complaints and other remedies. | 26. Section 23 does not affect the jurisdiction of an industrial tribunal to consider a reference under section 11 in relation to any deduction from the wages of a worker; but the aggregate of any amounts ordered by an industrial tribunal to be paid under section 12(4) and under section 24 (whether on the same or different occasions) in respect of a particular deduction shall not exceed the amount of the deduction.
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Supplementary |
| Meaning of "wages" etc. | 27. - (1) In this Part "wages", in relation to a worker, means any sums payable to the worker in connection with his employment, including-
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| | (a) any fee, bonus, commission, holiday pay or other emolument referable to his employment, whether payable under his contract or otherwise, |
| | (b) statutory sick pay under Part XI of the Social Security Contributions and Benefits Act 1992, |
| | (c) statutory maternity pay under Part XII of that Act, |
| | (d) a guarantee payment (under section 28 of this Act), |
| | (e) any payment for time off under Part VI of this Act or section 169 of the Trade Union and Labour Relations (Consolidation) Act 1992 (payment for time off for carrying out trade union duties etc.), |
| | (f) remuneration on suspension on medical grounds under section 64 of this Act and remuneration on suspension on maternity grounds under section 68 of this Act, |
| | (g) any sum payable in pursuance of an order for reinstatement or re-engagement under section 113 of this Act, |
| | (h) any sum payable in pursuance of an order for the continuation of a contract of employment under section 130 of this Act or section 164 of the Trade Union and Labour Relations (Consolidation) Act 1992, and |
| | (j) remuneration under a protective award under section 189 of that Act, |
| | but excluding any payments within subsection (2).
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| | (2) Those payments are-
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| | (a) any payment by way of an advance under an agreement for a loan or by way of an advance of wages (but without prejudice to the application of section 13 to any deduction made from the worker's wages in respect of any such advance), |
| | (b) any payment in respect of expenses incurred by the worker in carrying out his employment, |
| | (c) any payment by way of a pension, allowance or gratuity in connection with the worker's retirement or as compensation for loss of office, |
| | (d) any payment referable to the worker's redundancy, and |
| | (e) any payment to the worker otherwise than in his capacity as a worker. |
| | (3) Where any payment in the nature of a non-contractual bonus is (for any reason) made to a worker by his employer, the amount of the payment shall for the purposes of this Part-
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| | (a) be treated as wages of the worker, and |
| | (b) be treated as payable to him as such on the day on which the payment is made. |
| | (4) In this Part "gross amount", in relation to any wages payable to a worker, means the total amount of those wages before deductions of whatever nature.
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| | (5) For the purposes of this Part any monetary value attaching to any payment or benefit in kind furnished to a worker by his employer shall not be treated as wages of the worker except in the case of any voucher, stamp or similar document which is-
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| | (a) of a fixed value expressed in monetary terms, and |
| | (b) capable of being exchanged (whether on its own or together with other vouchers, stamps or documents, and whether immediately or only after a time) for money, goods or services (or for any combination of two or more of those things). |
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