The contractor I am working for has made deductions from me - why?

Under the Industrial Training Act 1982 we levy employers in the construction industry. Employers must pay levy on payments to sub-contractors for labour-only as well as on direct employees. However, the Act does not give authorisation to make deductions from any amounts paid to labour-only sub-contractor or other worker.

Section 13 of the Employment Rights Act 1996 (what was Section 1 of the Wages Act 1986) says that an employer must not take amounts from his or her worker's wages unless:

  • The deduction is authorised under the workers contract, or
  • The worker has previously agreed in writing

There have been a number of cases before industrial tribunals about deductions for our levy. The tribunals have made it clear that the deductions are not legal unless the worker has agreed beforehand.

The condition shown above of the Employment Rights Act applies to deductions made from labour-only sub-contractors as well as employees on PAYE. You may want to get legal advice about your own circumstances.