The UK Rules
'Follow the Regulations'
Cash Shortages

Cash Shortages

According to the law, wages include any emolument of employment (salary), any bonus, fee, holiday pay, or commission.

Wages also include Statutory Sick Pay and Statutory Maternity Pay.

Wage deductions, or payments received by an employer from an employee, need prior written consent unless the deduction is required or permitted by law.

Special circumstances for staff salaries can include the recovery of certain statutory deductions and overpaid wages or expenses.

Authorisation for these special deductions is often agreed by writing in the contract of employment.

Employed staff who deal with the public and are carrying out retail transactions, fall into a special rules category for cash shortages at work.

Cash or stock deficiencies may result in a wage deduction by your employer.

However, the deduction cannot exceed 10% of your gross wage payment.

Cash shortage deductions must also be made from an employee within one year of the circumstances when the shortage was discovered.

Itemised Pay Statements

An itemised pay statement is a written pay slip produced by an employer for every employee.

The statement should be given to each worker before pay day, or at the time the salary is paid.

Pay statements must show the employee's gross salary, the net amount payable, any variable or fixed deductions, and the method of payment, for example cash or cheque.

Wage Cash Shortages at Work; UK Rules Updated 2017