Department of Labour Relations

12. In case of absences for which employees receive benefits from the Social Insurance Services (e.g. annual leave, parental leave, maternity leave, etc), is it necessary to fill out and sign a consent document for the wage deductions that aim to recover the benefits?

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In relation to deductions for absences for which employees receive benefits from the Social Insurance Services (e.g. annual leave, parental leave, maternity leave, e.t.c.) there is no need to sign and keep a wage deduction consent document given that:

(a)
the non-payment of wage refers to the periods when the employees do not work and therefore do not receive a wage
AND
(b)
 the non-payment of wage for the aforementioned absence is made during the month that the employee is absent and not at a later stage.
    In other cases, a wage deduction consent document needs to be signed and archived. These cases concern the likelihood that an employer pays his/her employee's wage normally during the above absences (without deductions). Therefore, at a later stage, upon the employee's return to work, the employer proceeds with deductions for the benefits received by the employee (in full or in installments). Thus, these deductions are considered as deductions from earned wages. Consequently, in these cases, the employer should either:

    (a)
    		fill out a wage deduction consent document for each case of absence separately, describing the ways the deductions from the wage/s will be made, and the document must be completed/signed in a timely manner, so that no misunderstandings are created
    OR
    (b)
    		 fill out a general wage deduction consent document upon employment commencement outlining how amounts will be deducted from wages.




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