In Saskatchewan there are various rules setting out what deductions can and cannot be taken off an employee’s pay cheque. Let’s go over the facts and myths about deductions.
Wage Deductions Facts
Employers can deduct:
- For employee contributions to pension plans or retirement savings plans;
- Initiation fees, and dues to a union if it is the bargaining agent for the employee;
- Court ordered maintenance payments;
- Voluntary employee purchases from the employer of any goods, services or merchandise;
- Deductions required by the government, such as CPP, EI premiums and income tax.
Employers can also deduct from an employee’s wages if the employee is overpaid due to an honest clerical mistake. It is important that the issue is caught and dealt with in a timely manner.
Wage Deductions Myths
Employers cannot deduct:
- Damage, or breakage
- Poor quality work;
- Damage to employer's property including accidents involving employer vehicles or equipment; or
- Failure to collect payment by a customer, including "dine-and-dashes" and shoplifting.
- For any special clothing or uniforms required by the employer that identifies the employer’s business. (i.e. collared shirt that says the business name on it)
If you want to know about other situations, CFIB’s Business Resources team is ready to help. For more information please visit the following link:
CFIB's Business Counsellors are available to answer your questions.