Quick answer: An Ontario employer may deduct money from wages when required by law, authorized by a court order, or permitted by a valid written employee authorization that identifies a specific amount or calculation. Blanket authorizations are often not enough.
Common lawful deductions
- Income tax
- Canada Pension Plan contributions
- Employment Insurance premiums
- Court-ordered amounts
- Specific deductions authorized in writing
What makes written authorization valid?
The authorization should be voluntary and state the amount or provide a clear method for calculating it. A contract clause allowing “any money the employer considers owing” may not provide the required specificity.
Cash shortages and lost property
An employer generally cannot deduct for faulty work, a cash shortage or lost/stolen property when someone other than the employee had access to the cash or property. This is especially relevant in retail and restaurant workplaces with shared tills.
Uniforms, tools and training
Deductions for uniforms, tools or other items should be reviewed carefully. Even when authorized, a deduction cannot be used to avoid minimum employment standards. Required work performed during training must generally be paid.
How to check a deduction
- Compare the pay stub with your hours and agreed wage.
- Identify every deduction and its purpose.
- Ask for the signed authorization or legal basis.
- Request correction in writing.
- Keep schedules, receipts and bank records.
Example
If a shared cash register is short by $80, deducting $80 from one employee’s pay may violate the ESA because other people had access. The worker should document who used the till and object promptly in writing.
Use Ontario’s official payment-of-wages guidance and our pay stub checklist.
This article is general information, not legal advice.
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