Q: An employee (under 25) had a car accident in the company vehicle & damage was done to another vehicle & a small amount to the work vehicle. The employer advised the employee that he would have to pay for the damages or cost of excess (employee is unsure of what exactly he was paying for) at some stage. A year later that employee resigned & the employer took $1000 out of his final pay to pay for the accident costs. There was nothing in writing, no receipts, nothing.
The employee does not have a copy of their employment agreement – despite asking for one several times.
Can you please advise what the employees rights are in this case & if the employer was legally allowed to take that money from his final pay without written notice.
A:A number of breaches here:
The employee must have a written employment agreement (agreed by the employee), also if the employee requests their current terms and conditions must be provided within 7 days.
There should have been a clause or a letter stating what would happen if the employee was involved in an accident in the company vehicle, what the process was and how and if they could become liable. They would need to agreed to this (policy)
They cannot deduct any money owed to the employer without the employees written consent (Wages Protection Act Section 5).