Chapter 2Terms and conditions of employment Part 2-9Other terms and conditions of employment Division 2Payment of wages
2.12Certain terms have no effect—reasonable deductions
(1) For subsection 326(2) of the Act, a circumstance in which a deduction mentioned in subsection 326(1) of the Act is reasonable is that:
(a) the deduction is made in respect of the provision of goods or services: (i) by an employer, or a party related to the employer; and
(ii) to an employee; and
(b) the goods or services are provided in the ordinary course of the business of the employer or related party; and
(c) the goods or services are provided to members of the general public on:
(i) the same terms and conditions as those on which the goods or services were provided to the employee; or
(ii) on terms and conditions that are not more favourable to the members of the general public.
Example 1: A deduction of health insurance fees made by an employer that is a health fund.
Example 2: A deduction for a loan repayment made by an employer that is a financial institution.
(2) For subsection 326(2) of the Act, a circumstance in which a deduction mentioned in subsection 326(1) of the Act is reasonable is that the deduction is for the purpose of recovering costs directly incurred by the employer as a result of the voluntary private use of particular property of the employer by an employee (whether authorised or not).
Examples of costs
1 The cost of items purchased on a corporate credit card for personal use by the employee.
2 The cost of personal calls on a company mobile phone.
3 The cost of petrol purchased for the private use of a company vehicle by the employee.
Compilation No. 36
Fair Work Regulations 2009
Compilation date: 11/09/2021