PHB relied on consent forms employees had signed, agreeing to weekly deductions of specified amounts to cover costs like accommodation, travel, and insurance. The consent forms did not explain how these deductions would apply in-practice and PHB did not act consistently with those forms.
Wage deductions must be consented to, and the employer cannot deviate from those terms.
An employer cannot make deductions from wages without consent, even to recover debt.
Wage deductions cannot be made to pay for personal protective equipment.
Except in certain circumstances, wage deductions cannot reduce an employee’s pay to below the minimum rate of pay.
Section 27 of the Health and Safety at Work Act 2015 prohibits the imposition of a levy or charge on workers for health and safety. Therefore, the deductions for the cost of personal protective equipment were unlawful. The court held that PHB had to provide this equipment to the employees.
Employees are entitled to minimum wages under s. 6 of the Minimum Wage Act 1983.
The court clarified that employees are entitled to receive this minimum rate of pay, and not just (as PHB argued) entitled to be paid at that rate before deduction.
An accommodation allowance can be included in the calculation of minimum wages, but only if the cash value is fixed in the employment agreement or is within the proportional limits in the MWA (15% of...
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