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July 18, 2005
Court of Appeal rules that employers cannot unilaterally withhold wages for any reason
A recent decision in the Court of Appeal for BC has ruled that an employer cannot withhold an employee’s wages for any reason. If for example, an overpayment is made on your paycheck by the employer, the employer cannot unilaterally withhold payment of that amount on the next paycheck.
The BCNU filed a grievance in 2002 against the employer’s right to unilaterally make deductions due to inadvertence or error. The grievance went to arbitration and in December 2002 the arbitrator ruled in favour of the Union. The employer appealed the decision at the Court of Appeal and the arbitrator’s decision was upheld unanimously in favour of the union.
Employment Standards Act Section 21 supports the Court of Appeal decision and says clearly that “ an employer must not, directly or indirectly, withhold, deduct or require payment of all or part of an employee’s wages for any purpose.”
However, the ruling does not prohibit the employer for ever recovering an overpayment from an employee. The employer is only able to recover overpayments from employees when the employee agrees to the deductions and has given consent.
If the employer has determined that you have been overpaid and withholds some of your pay without your agreement, you must file a grievance.
Contact your steward if you find yourself in this situation.
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