My employer deducted money from my pay without permission for a cash register shortage. Is this allowed?

What the Law Says

The Fair Work Act 2009 (Cth) strictly limits when an employer can deduct money from an employee’s pay. Deductions for cash register shortages are not permitted unless specific legal conditions are met.

Under Australian law, an employer may only deduct money from your wages if you have given written consent for a deduction that is principally for your benefit — for example, salary sacrifice or union fees. A cash shortage is not for your benefit, so this exception does not apply.

Even with your written agreement, a deduction is unlawful if it is unreasonable or unfair — such as recovering losses caused by poor rostering, inadequate training, or lack of supervision. Employers bear responsibility for workplace systems, including cash handling.

The Fair Work Ombudsman confirms that deductions for till shortages, breakages, or customer theft are generally unlawful unless ordered by a court or permitted under an award or registered agreement — and even then, strict conditions apply.

Statutory Text

An employer must not deduct any amount from an employee’s wages unless the deduction is authorised by this section.

— Fair Work Act 2009 (Cth), s. 324 — Deductions from wages

Statutory Text

A deduction is authorised if: (a) the employee has agreed in writing to the deduction; and (b) the deduction is principally for the employee’s benefit; and (c) the deduction is not directly or indirectly for the employer’s benefit.

— Fair Work Act 2009 (Cth), s. 324(1)(a)–(c)

What to Do

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