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Deduction of salary by employers, whether lawful or unlawful?

The right of an employer to sanction an employee for misconduct involving financial loss, is a direct deduction of sum from the employee's salary. Whilst a common act, the decision to deduct an employee's salary is not entirely at the discretion of the employer section 5 of the Labour Act.

IN the recent case of Omolola Shafqat Ogungbuaro v. Access Bank plc, the National Industrial Court addressed one of the many instances of salary deduction and the position of law in that regard.

The court held that section 5 of the Labour Act prohibits the deduction, or any agreement to deduct the salary of an employee, for or in respect of any fine: provided that

1.) with the prior consent in writing of an authorized labour officer

2.) a reasonable deduction may be made in respect of injury or loss caused to the employer by the willful misconduct or neglect of the worker.

in Adebusola adedayo omole vs. Mainstreet bank microfinance bank limited, the National Industrial Court held that a unilateral reduction in wages and salaries of workers is not acceptable, and that the reduction of the salary of employee by the employer without her consent violate the spirit of both section 5(1) of labour act and the ILO convention no 95 (protection of wages convention, 1949 )

Note: employer should know that matters regarding deduction and subcharges must thus treated with precision and reasonable care.

To employees, if your salary is being remove by you employer, ask question, if no satisfactory answer is given sue the person to court.

Content created and supplied by: Maslowcollins (via Opera News )

Access Bank Adebusola Labour Act National Industrial Court Omolola Shafqat Ogungbuaro


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