Deduction from salary agreement template
If you need to make a regular deduction from the salary of an employee, issue this model agreement to obtain their consent.
5 mins
What is a Deduction from salary agreement?
A Deduction from Salary Agreement is a written agreement between an employer and employee that specifies the types of deductions that may be taken from an employee's salary. Deductions may be made for various reasons, such as taxes, insurance premiums, retirement contributions, or other benefits provided by the employer.
The agreement typically outlines the terms and conditions of the deductions, including the amount to be deducted, the frequency of deductions, and the duration of the agreement. It may also specify the circumstances under which deductions may be increased or decreased, and the process for disputing or challenging any deductions made.
As and when required
The Employer (you) to the Employee
Great Britain & NI (United Kingdom), Worldwide
What legislation or best practices underpin this template / should I be aware of?
It is important to note that deductions from salary must comply with local labor laws and regulations, and the agreement must be signed by both the employer and employee before any deductions are made.
Section 13 of the Employment Rights Act 1996 makes it unlawful for an employer to make deductions from an employee's wages unless the employee has given prior written consent, or a relevant provision exists to this effect in the employment contract.
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To view this you will need to make a purchase.
Refer to your local employment legislation / labor laws to support the execution of the template. Review the wording for local accuracy.
Deduction from salary agreement
| Name: | |
| Department: | |
| Item: | |
| Cost: |
I, [name], herby authorise the deduction of £[amount] from my salary each [week|month] in respect of [reason for deduction, e.g. sports and social club subscription, BUPA membership, etc.].
This letter does not authorise any other deduction(s) than that stated above, nor do I agree to any variation upward of the amount stated without my further written approval.
I understand that this is a relevant provision of my contract and that if insufficient remuneration is due to me from my employer, further action may be taken to recover any outstanding debt.
If you are in agreement with the above terms and conditions please sign both copies of this statement, retain one and return the other to HR Services.
| Signed (employee): | |
| Date: |
HR SERVICES / PAYROLL USE ONLY
| Details recorded?: | |
| By (name): | |
| Date: |
What communication / process sequence is this part of?
Pay or salary payment arrangements policy
This model policy template provides information regarding pay or salary payment arrangements.
Why buy our Deduction from salary agreement template?
- It's easily editable and implementable, saving you time and money
- It's designed by CIPD accedited Chartered HR practitioners with operational experience in this area
- You will maintain compliance with ACAS guidelines, legislation, and industry best practices
- Email notifications for any updates made to this template or its accompanying materials
- 12 months of unrestricted access without any additional costs (any update in that period is free to you)
- A 25% discount on all library, toolkit, and template purchases/renewals
