Can my employer deduct money from my pay for a till shortage or breakage?

Generally no. Under section 324 of the Fair Work Act 2009, an employer can only deduct from your pay if you authorised it in writing AND the deduction is principally for your benefit, or if it is authorised by an award, registered agreement, a law, or a court order. A till shortage, breakage, or a customer who leaves without paying is a loss for the employer, not for your benefit, so deducting it from your wages is generally unlawful — even if you signed something, because section 326 can make an authorisation that benefits the employer and is unreasonable ineffective.

Is a wage deduction legal if I agreed to it in writing?

Written agreement is only part of the test. Under section 324 the deduction must also be principally for your benefit — for example salary sacrifice, union fees, or a voluntary payment to a third party you nominated. A written authorisation that is directly or indirectly for the employer's benefit and is unreasonable can be void under section 326. You can also withdraw or vary a written authorisation in writing at any time.

Can my employer deduct pay if I am under 18?

If you are under 18, section 324(3) of the Fair Work Act requires a parent or guardian to also agree to the deduction in writing. Without that parental agreement, the deduction is not effective even if you signed it yourself.

Can my employer dock my pay for not working out my notice period?

Only in limited cases. Some modern awards allow an employer to deduct up to one week's wages if an employee over 18 does not give the required notice, but only from wages owing — not from accrued annual leave — and only where the award expressly permits it. Outside that, deducting pay because you did not work out notice is generally for the employer's benefit and is likely unlawful under section 324.

Wage Deduction Legality Checker

Check whether your employer can legally deduct from your pay for a till shortage, breakage, customer walkout, uniform, training, overpayment, or unworked notice. Applies the section 324 Fair Work Act test. General information, not legal advice.

Last verified: 21 May 2026

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Most pay deductions need your written consent. Under section 324 of the Fair Work Act 2009, an employer generally can only deduct from your pay if you authorised it in writing and it is principally for your benefit, or if an award, agreement, law or court order allows it. This tool gives general information, not legal advice.

What was the deduction for?

Reason for the deductionAmount deducted ($, optional)

Your circumstances

I authorised this deduction in writing myself (for example I signed a form or agreed by email).The deduction is principally for my benefit (for example salary sacrifice, union fees, or a voluntary payment to someone I chose) — not to cover a loss for my employer.The deduction is required or authorised by my award, registered agreement, a law (such as tax or child support), or a court order.I am under 18.

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General information based on the Fair Work Act 2009 (Cth) and Fair Work Ombudsman guidance, current as at the date shown above. It is not legal advice and does not account for every award clause or registered agreement. For free help, contact the Fair Work Ombudsman on 13 13 94 (fairwork.gov.au), your union, or Legal Aid.

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FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is general information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

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