An employer is allowed to make a deduction from an employee’s pay if:
- the employee agreed in writing and the deduction is principally for the employee’s benefit, or
- the employee authorised the deduction in accordance with an enterprise agreement, or
- the deduction is authorised by or under a modern award, a pre-modern award (federal award, NAPSA, or transitional award), or an order of Fair Work Australia, or
- the deduction is authorised by or under a Commonwealth, State or Territory law or an order of a court.
Generally speaking, even if the deduction is authorised by an enterprise agreement or award as set out above, an employer cannot make a deduction from someone’s pay if:
- the deduction is for the benefit of the employer or someone related to the employer and is unreasonable in the circumstances, or
- the employee is under 18 years of age and their guardian or parent hasn't authorised the deduction in writing.