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					                                                                       EMPLOYMENT                                         STANDARDS            ACT



                                                                               Factsheet
This fact sheet has been prepared for general information purposes. Please refer to the Employment Standards Act and Regulation for
purposes of interpretation and application of the law.

_________________________________________________________________________________________________________________

                                                                                                                                              May 2006

Deductions from Wages

Deductions
An employer may not, directly or indirectly, withhold, deduct or require payment of all or part of an employee’s
wages for any purpose except as permitted or required by the Employment Standards Act, or by another act of either
British Columbia or Canada.


Unauthorized Deductions
Employers cannot require that an employee pay for any portion of an employer’s business cost.
This includes expenses arising from theft, damage, breakage, poor quality of work, damage to employer property, or
failure to pay by a customer. Some instances where these issues arise include “gas-and-dash”, “dine-and-dash”,
shoplifting, or accidents involving employer vehicles or equipment.
If an employer requires an employee to pay for any business cost whatsoever, in any way, the Employment Standards
Branch can recover that money as unpaid wages. This includes money paid out of tips or any other source.
Any agreement by an employee to contribute towards an employer’s cost of doing business is a contravention of the
Act and is not enforceable.
If the Branch issues a decision finding that an employer has contravened the Act, monetary penalties will be imposed
ranging from $500 to $10,000.




                          ACFC W E S T – T H E A S S O C I A T I O N O F C A N A D I A N F I L M C R A F T S P E O P L E , L O C A L 2 02 0
                          COMMUNICATIONS, ENERGY AND PAPERW ORKERS UNION OF CANADA
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                          P H O N E : (6 04 ) 29 9 - AC F C ( 2 2 3 2 ) F A X : ( 6 04 ) 29 9- 22 43          ww w. acfc west .co m
Authorized Deductions
Employers are required to deduct for such things as income tax; Employment Insurance premiums; Canada Pension
Plan contributions; union dues or other amounts authorized by a collective agreement; or, amounts required as a
result of a lawful garnishing order.


Other Permitted Deductions
An employee may request that certain amounts be paid directly to a third party.
Upon receiving written permission from the employee, an employer must make deductions for medical premiums;
extended health or dental coverage; charitable donations or pension plan contributions if the amounts are tax-
deductible; and, maintenance payments under the Family Maintenance Enforcement Act.
The employer may (but is not required to) deduct from wages to pay a credit obligation, normally for goods or
services an employee has received from a third party.
The money must be remitted within one month of being deducted. To cancel permission, the employee must give
notice in writing to both the employer and the person or organization being paid.


Advances / Overpayments
Advances on wages and accidental overpayments cannot be deducted from an employee’s paycheque unless the
employee has given written permission to the employer authorizing the repayment.




_________________________________________________________________________________________________________________


                      Ministry of Labour                                           FOR MORE INFORMATION:
                      and Citizens’ Services                                       Call: 1 800 663-3316, 612-4100 in Prince George
                      Employment                                                   Fax: 250 612-4121
                      Standards                                                    Website: www.labour.gov.bc.ca
                      Branch




                      ACFC W E S T – T H E A S S O C I A T I O N O F C A N A D I A N F I L M C R A F T S P E O P L E , L O C A L 2 02 0
                      COMMUNICATIONS, ENERGY AND PAPERW ORKERS UNION OF CANADA
                      #10 8 – 39 93 H E N N I N G D R I V E , B U R N A B Y , B C V5 C 6P 7
                      P H O N E : (6 04 ) 29 9 - AC F C ( 2 2 3 2 ) F A X : ( 6 04 ) 29 9- 22 43          ww w. acfc west .co m

				
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