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Can a company deduct money from my salary without notifying me?

  • 26-07-2007 6:16pm
    #1
    learoy
    Closed Accounts Posts: 25 ✭


    hi
    last month i was given a letter stating my bonus amount and that amount was lodged in to my account with my monthly salary. however this month they took 3/4s of the bonus back from this months salary with out notifying me or telling me there was an error in the first place. i contacted the payroll dept and they just said it was an error to give me that much last month..
    i am now left with only half my monthly salary and to make it worse i spent all of the bonus that was given to me last month because i didnt know it was an error.. i am now left serverly short cashed for this month .

    Is this legal and should the company have notified me before deducting my salary?

    THanks in advance


Comments

  • #2
    PeakOutput
    Registered Users, Registered Users 2 Posts: 7,639 ✭✭✭PeakOutput


    i got over paid in my old job by a small amount and they just wrote it off but they later paid me almost 6 times too much for a month off overtime(that was a great pay check) and they"asked" can i pay it back i said no problem so i worked over time for a few months without getting paid for it.

    however my new job is a different kettle of fish and numerous people have been over paid and then money taken back alot of this would be because of approved holiday days that were then found to be outside the persons entitlement and changed a month or so later to unpaid leave. the first the people knew about it was a little code on their pay slip with minus whatever the figure was beside it.

    im sure its good practice to notify you and if possible to write it off but it seems that it is acceptable for them to just take it back


  • #3
    celt2005
    Registered Users, Registered Users 2 Posts: 327 ✭✭celt2005


    Check this out with


    http://www.flac.ie


    Just because people allow it, does not make it legal.


  • #4
    leeroybrown
    Closed Accounts Posts: 7,563 ✭✭✭leeroybrown


    Overpayment is a legal ground for an employer to make a deduction from the wages of an employee.

    The relevant leglislation can be found in section 5 sub-section 5(a) of the PAYMENT OF WAGES ACT, 1991.

    The dodgy issue here is that they confirmed your bonus amount in writing. The question becomes does this really constitute an normal 'overpayment' of wages when you have a letter telling you it is yours?

    Regardless of the legalities I'd be making an internal complaint to someone more senior than the payroll people. Telling someone that they have money to spend then under-paying them has all kinds of dodgy consequences for mortgages, car loans, the food people need to give their family...


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