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Authorised Deductions Agreement

Version 1.0 Updated 9 Mar 2020
Correspondence Manage

Who can use this correspondence
This correspondence can be used by all employers.

Commentary
This commentary provides guidance on the Authorised Deductions Agreement you will create. The Agreement operates in conjunction with the Employee Emergency Need Fund Policy which is available on Workplace.

This Authorised Deductions Agreement is required because under the Fair Work Act 2009 (Cth), an employer must obtain written consent from the employee if they are seeking to make a deduction from the employee’s pay. The deduction must also be principally for the employee’s benefit. This Agreement forms part of the formal framework around the advancement of wages/salary in circumstances where an employee may be experiencing financial or economic hardship due to a sudden and non-recurring emergency or personal situation that is unforeseen or unavoidable.

We recommend that any amendments you make to the Agreement be reviewed by a workplace lawyer, to ensure the Agreement remains compliant with relevant laws and limits any legal risks for the business.

 

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