Deductions from wages – changes in the new Civil Code
In connection with the entry of the new Civil Code (NCC) on January 1, 2014, changes have also been made in the wage area, specifically within agreements on payroll deductions.
The new employer has the right to decide whether to enter into an agreement with the employees on payroll deductions or not (for example, in the past the employer had a legal obligation to conclude an agreement on child maintenance deductions). At the same time the employer can now conclude an agreement on deductions of any type of debt. If, however, the employer concludes more agreements on deductions with the employee, the employer has the right to request from the employee the costs associated with the implementation of these deductions. This rule is, however, always applied to the second and subsequent deduction.
It is very important that you set the rules for the implementation of deductions, the best way being to set it up in the internal directive. It is also necessary to pay attention to the amount of the deduction – it must not exceed one half of the net wage, taking the non-deductible amount into account. On the other hand, in the case of executions, you don’t need to control it.
In the case of the writ of execution as an employer, you have the right to ask the court to stop enforcement if the employee did not receive a salary for 12 months. This enables you to avoid answering the constant questions of executors as to why you don’t deduct executions.
Author: Gabriela Černá