The Payment of Wages Act 1991 protects workers regarding how they are paid, what deductions can be made, and what to do if there are issues with wages. Here’s a simplified breakdown:

1. How Wages Are Paid

• Employers must pay wages in one of the following ways:
  • By cash,
  • Through a bank transfer, or
  • Via cheque or postal order.
• Employees must be informed in advance how they will be paid.

2. Wage Slip

• Each time employees are paid, they must receive a payslip showing a clear breakdown of their wages, including:
  • The total amount earned.
  • Details of any deductions (like tax, social insurance, or pension contributions).

3. Permitted Deductions

• Employers can only make deductions from wages if:
  • It’s required by law (e.g., taxes, social insurance contributions).
  • The employee agrees to it in writing (e.g., a pension scheme or union fees).
  • It’s for something the employee has received (e.g., meals, accommodation).
  • The employee caused damage or loss to the employer (e.g., breaking equipment or missing money from a till), but only after the employee has been informed in writing.
  • It’s for overpayment of wages, but the employee must be informed before the deduction is made.
• Deductions cannot reduce the employee’s pay below the national minimum wage (unless required by law).

4. Unauthorised Deductions

• If an employer makes a deduction that is not allowed or without the employee’s consent, this is called an unauthorised deduction.
• Employees can file a complaint about unauthorised deductions with the Workplace Relations Commission.

5. Complaints Process

• If an employee believes there has been a wrong deduction or a non-payment of wages, they can bring the issue to the Workplace Relations Commission.
• If the Commission finds the employer was in the wrong, the employee can be awarded the missing wages and possibly extra compensation.

6. Who is Covered by the Act?

• The Act applies to all employees, whether full-time, part-time, or temporary, with the exception of certain categories like members of the Defence Forces or Gardaí.

In Summary:

The Payment of Wages Act ensures that:

• Employees receive their wages clearly and on time.
• Only agreed or legal deductions can be made.
• Employees have a way to challenge any wrong or unfair deductions from their wages.