Payroll deductions without notice

[PlanBea]

Hi, I returned to work after statutory maternity leave (big employer who should know better) and have had a nightmare time with payroll. Amongst issues, I was having deductions from my salary for pensions arrears, I asked for information on this multiple times and was ignored (I asked what it was for, how much the arrears were or how long they would go on for, at least once a fortnight over a period of months and was ignored).

I have since had this resolved and have raised this as part of a concern with how my case was dealt with. Their argument is that it was legal as the maternity policy states "on return to work, arrears of [pension] contributions will be deducted from her salary by Payroll over a period of time agreed with the employee". My argument was it wasn't in my contract or agreed in writing with me, therefore it wasn't legal - I'm not doing anything about it but they need to make sure their policy is correct and followed correctly.

Can anyone advise if that sentence made the payroll deductions legal? I don't want to get out of paying these contributions, I know I owed them and I know I've paid them off, I just don't want someone else having six months of problems because payroll aren't doing things properly.

over a period of time agreed with the employee

If it wasn't discussed and agreed with you then they shouldnt have deducted anything

They are saying that the deductions are legal because they said they would happen, the "agreed with employee" bit is irrelevant, though they have said that's wrong and they're going to update it - I don't feel it is irrelevant and is actually fundamental to the legality of it?

They've brushed off a lot of my other concerns/blamed other people, but this feels like something that's a definite fact. I don't want to just drop it if it does actually have a serious/legal implication.

Most contracts normally have a catch all clause about about following & adhering to all company policies, does yours? If it does & you signed it, then yes they can say you agreed to abide by your maternity policy.

There is a catch all for "subject to rules, regulations and policies", nothing else about deductions other than for overpayments. The policy states maternity arrears payments will be agreed in advance though.

The question is whether the company policies are contractual. If they are, this should be clearly stated. However, many companies don't make their policies contractual as it limits their ability to change their policies - they would have to consult all employees before changing the policy. If this policy is not contractual, they cannot use it to make deductions from your pay without your agreement. You haven't posted the wording, but a statement that your employment is "subject to rules, regulations and policies" is unlikely to be enough to make a policy contractual. The fact they intend to update the policy, apparently without consultation, suggests that the policy is not contractual.

They can only make deductions if one of the following applies:

• it is required by law (e.g. income tax)
• you agree to it in writing
• your contract says they can
• a statutory payment to a public authority is required
• you have been taking part in industrial action
• they have overpaid you
• the court has ordered the deduction

Unless the policy is contractual, they can't rely on it to make deductions. Even if it is contractual, the policy states that repayment must be "over a period of time agreed with the employee". They cannot simply brush that off and say it is irrelevant, still less can they say it is wrong.

My view is that your employer has got this wrong and if you took action for unlawful deduction of wages you would win based on the information you have posted here.