Tony works full-time and was overpaid $2000 over 3 years because of a payroll error. There’s nothing in his award or agreement that deals with overpayments.
Tony and his employer have a meeting to discuss the overpayment and to come up with a solution about how the money can be paid back.
His employer said Tony can choose the way the money is paid back (eg. cash, cheque or electronic transfer) and the amount and frequency of the payments. Tony tells his employer that he’d prefer if $20 was deducted from his pay each week until the $2000 is repaid. This arrangement is put in writing and signed by Tony and his employer.
As Tony had a choice on how the money was paid back and the amount and frequency of each payment was reasonable, this would be a permitted deduction.
However, if Tony’s employer didn’t pay him any wages until the $2000 had been repaid, this wouldn’t be reasonable and wouldn’t be a permitted deduction.