The employees should receive this statement not later than two months from the date of commencement of employment. It should contain the names of the employer and employee, date of commencement of employment2; rate and periodicity of remuneration, terms and conditions of the working hours, entitlement to holidays, terminal benefits, length of notice that the employee has to either receive or give if termination of employment is desired, job title of the employee3, etc. There is no restriction on the method of payment to be made to employees. Moreover, these methods are to be negotiated between the employer and the employees. However, if the agreed upon method of payment is subsequently altered by the employer and if such a departure leads to financial loss for the employee, then the employee is entitled to prefer a claim in respect of breach of contract.
Nevertheless, the statute makes available to employees, the right to protection from unauthorized deductions from their wages and such protection is applicable even to persons working on a contract basis or as apprentices. Moreover, such protection has been extended to Crown servants and persons working on board a ship registered in the UK. Moreover, employers are well within their rights to make statutory deductions like those relating to income tax or insurance. Further, it is permissible to make deductions in instances of overpayment of wages, judicial decisions and participation in strikes4.
In respect of retail work, additional protection has been afforded by the statute. A retail worker is any person carrying out retail transactions selling, which have been defined as the supplying of goods or services5. However, this additional protection has not been provided to those who transact only with companies. Moreover, an employer cannot make deductions in excess of a tenth of the gross wages in respect of shortages or stock deficiencies6. The time limit for making such deductions has been set at twelve months, unless the deduction forms part of a series of such deductions in respect of shortages or deficiencies. Furthermore, such deductions have to be made subsequent to informing the employee the exact amount due from him. Such communication of information has to be in writing and has to be made on a pay day7.
Any employee, irrespective of the length of service put up, who is of the opinion that an unlawful deduction from wages has been made by the employer or if the employee has been required to make an unlawful payment may approach the Employment tribunal in order to obtain redressal for such grievance.
The time limit for lodging such complaints is in general three months from the due date of payment of the wages or within such period as permitted by the Employment tribunal8. This three months limitation period in respect of payments by the worker to the employer is determined from the date of receipt of payment by the employer. If a series of deductions or payments are involved, then under such circumstances this three months period is to be reckoned from the date of the last deduction or payment in the series. However, this time limit can be extended by a further three more months under specific circumstances as per the provisions of the statutory dismissal, disciplinary and grievance procedures introduced from the 1st of October 20049.
Wages have been defined to construe, as per this act as denoting amounts payable to employees