Logo Advokátní kancelář roku 2023

What can the employer deduct from my salary?

You may see various deductions from your wages on your payslip. Sometimes it’s a food stamp allowance, a multisport card or other benefits, or there may be an item for compensation. When are such deductions justified and when are they not?

HR předává zaměstnanci výplatní pásku
5 minutes of reading

Chapters of the article

The question of whether an employer can itself deduct any amounts from an employee’s wages has always been controversial. Recently, however, the Supreme Court has weighed in on the issue. The legal conclusion is that an employer may unilaterally deduct its claims from wages, but the law imposes a number of restrictions.

What is an employer allowed to touch?

First of all, any deductions (whether or not the employee has agreed to them) must not exceed half of the employee’s wages. Even if deductions are made, you should always be paid at least half of your net pay.

The main deductions that will always be made from your wages are deductions for personal income tax and social security and health insurance contributions, as well as pension contributions. These deductions, which are applied as a priority, make your gross wages your net wages. All other deductions apply to this net wage.

The second category of deductions mentioned in the law are various claims by the employer, such as a wage advance, an unpaid advance on travel reimbursements or other unpaid operating advances. These claims may be deducted by the employer even without the employer’s consent. However, it should not extend this scope further, even in cases where it legitimately thinks it can claim damages and the like against the employee.

Among the common deductions that apply to many employees, we can also mention various benefits such as multisport cards or meal vouchers. Here, the benefit is usually not provided free of charge, but with some symbolic participation of the employee (e.g. CZK 20 for a meal voucher worth CZK 120 or CZK 100 per month for a multisport card with unlimited monthly entries). Despite the fact that these are benefits that are advantageous for the employee, they must agree to them in advance.

When can you defend yourself?

When it comes to unilateral deductions, other restrictions apply. In particular, an employer should not deduct claims that are uncertain – most often these will be claims that the employee has legitimately disputed. For example, if your employer pays you a higher than usual bonus and you have a legitimate belief that it is a deserved bonus, you may be able to defend yourself if your employer deducts the overpayment from your next wage on the basis that the higher amount was paid in error last time.

Tip: The calculator on the justice.cz website can help you to calculate deductions from your wages

Solutions Tailored for You

Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.

Payrolldeductionsare sometimes voluntary and sometimes involuntary deductions fromwages. HR professionals encounter them relatively frequently in practice. At the same time, however, it is not a simple issue and not only the general public is sometimes confused about it. In our related article, we look at further details of payroll deductions.

An agreement needs to be made

Moreover, the Labour Code stipulates that a claim for damages can only be deducted from an employee’s wages on the basis of an agreement. Therefore, if your colleagues have not kept their mobile phones safe from loss, their employer can only deduct the damages from their wages if they agree to this in writing.

Since 2014, new legislation has been in force under which all agreements on deductions from wages are concluded in accordance with the new Civil Code, which is also used for employment relationships. The agreement does not necessarily have to be in writing, but we cannot but recommend that it is. This will avoid a number of potential complications.

If the deductions are not made to satisfy the right of the employer directly, the prior consent of the debtor’s employer is required to conclude the agreement. This means that the employer cannot be forced into such an agreement and use its administration to conveniently pay off the debt. There is, however, a technical debate as to what ‘prior approval’ means, since there is apparently no reason to invalidate an agreement if the employer only approves it when it is presented to him as a fait accompli.

Where the employer (i.e. the paymaster) has to pay under several withholding agreements at the same time, it can claim the costs of paying the second and subsequent agreement from the debtor.

In practice, however, it is recommended that employers enter into payroll deduction agreements wherever possible in all cases where employees have something deducted from their wages. This is the only way to ensure that their actions are not subsequently challenged. However, as summarised above, unilateral deductions are possible in many cases even without such an agreement. For example, deduction of an unaccounted advance previously made to an employee for travel allowances during a business trip.

Unjustified deduction from wages

If your employer withholds part of your wages unlawfully, you can of course defend yourself against this. You can bring the case to the attention of the relevant labour inspectorate, which can impose a fine if it finds that the employer has committed one of the administrative offences in the field of employee remuneration. You can also pursue the amounts owed through the courts. In extreme cases, non-payment of part of your wages may also be grounds for immediate termination of your employment. You can quit your job “on the hour” and claim compensation for the period of your notice.

Are you solving a similar problem?

Dostupný advokát team of online lawyers will solve it for you.

Solutions Tailored for You

Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.

Preset Prices
All services pre-priced for no surprises.
We Do Everything Online
Save time, money and the hassle of travel.
We Work Fast
90 % of issues get solved by the following day.
Experienced Team
We have specialists for every field of law.

Has this content helped you? Give it a rating

No rating yet. Be first to rate and help others.

Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

Reviews of the Dostupný advokát service

Recenze služby

Zuzana Marková, Prague

before 3 years

We had terms and conditions drafted for our gym, and now we are very glad that we did so. Clear relationship rules are the basis for lasting friendships, and never more so than in the business world!

Recenze služby

Pavel Kasal

before 3 years

I decided to withdraw from my operating lease prematurely and was charged a ridiculously high penalty, apparently because the car had been sold for a significantly lower price than its market value. I found it frustrating, so I turned to Dostupný advokát for help. They got to work on the case very fast and recommended (zobrazit více) several options on how to proceed. They also helped me prepare all necessary documentation. Thanks to them, I had to pay only a fraction of the original amount and saved tens of thousands of Crowns.

Recenze služby

Lucia Tóthová, Prague

before 3 years

We chose the premium package because it promised a fast reply within 24 hours, and we needed help quickly. A few hours after sending our order, Dostupný advokát called us. After discussing our issue and agreeing on the next steps, we felt confident in how the whole procedure would go since we had never experienced (zobrazit více) it before. We appreciate their patience.

View All Testimonials

You could also be interested in

About us in public media
Logo Česká advokátní komora Logo Advokátní kancelář roku 2023
Follow the news
Facebook Dostupný advokát Twitter / X Dostupný advokát