Deduction from salary agreement

A Deduction from Salary Agreement is a written agreement between an employer and employee that specifies the types of deductions that may be taken from an employee's salary. Deductions may be made for various reasons, such as taxes, insurance premiums, retirement contributions, or other benefits provided by the employer.

The agreement typically outlines the terms and conditions of the deductions, including the amount to be deducted, the frequency of deductions, and the duration of the agreement. It may also specify the circumstances under which deductions may be increased or decreased, and the process for disputing or challenging any deductions made.

It is important to note that deductions from salary must comply with local labor laws and regulations, and the agreement must be signed by both the employer and employee before any deductions are made.

Section 13 of the Employment Rights Act 1996 makes it unlawful for an employer to make deductions from an employee's wages unless the employee has given prior written consent, or a relevant provision exists to this effect in the employment contract.

Who should issue this template, and to whom?
The Employer (you) to the Employee

In which jurisdictions can this template be used?
Great Britain & NI (United Kingdom), Worldwide