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How can employers make legitimate deductions from an employees pay under the Ontario Employment Standards Act?

May 13, 2013 Simon Heath, BA, MIR, LLB, Heath Law Employee Relations, Employment/Labour Standards, Human Resources, Payroll, Source Deductions and Reporting, Wages and Compensation

A situation that arises all the time is whether an employer can deduct the full amount of a loan, an overpayment, the cost of faulty work, cash shortages or stolen goods or the costs of their uniforms. The issue of employer deductions is governed by section 13 of the Ontario Employment Standards Act (ESA) and a clear understanding of the rules will avoid disputes and potential claims by the employee to the Ministry of Labour, Employment Standards Branch.

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