Can an Employer Deduct Wages for Mistakes in Ontario?

If you made a mistake at work in Ontario, you might wonder – can your employer deduct the cost from your pay? In most cases, the answer is no. Ontario law protects employees from unfair wage deductions, even when an error costs the company money.

Let’s break down what the law says, what counts as an illegal deduction, and what you can do if money is missing from your paycheque.

🔍 What the Law Says About Deductions for Mistakes

Under Ontario’s Employment Standards Act (ESA), your employer can’t take money out of your wages for mistakes unless very specific conditions are met. This includes errors like:

• Ringing in the wrong item at a store
• Damaging company equipment
• Losing inventory or tools
• Customer walkouts or theft

Even if the mistake was clearly your fault, your employer is not automatically allowed to dock your pay.

✅ When Are Deductions Legal?

Your employer can only deduct from your wages if:

• It’s required by law (e.g. income tax, EI, CPP)
• There is a court order (e.g. wage garnishment)
• You give written consent for a specific deduction

❌ When Are Deductions for Mistakes Illegal?

In most cases, employers can’t deduct wages for mistakes or losses, even if:

• It was a one-time or repeated error
• The employer warned you in advance
• You signed a general waiver or policy when hired

🛑 Common examples of illegal deductions include:

• Charging you for a till shortage
• Withholding pay for broken equipment
• Deducting the cost of a returned item or refund
• Subtracting money due to a customer complaint

Even if there’s a workplace policy or contract clause that allows it, that policy may be unenforceable if it violates the ESA.

⚖️ What Should You Do If Your Employer Deducts Your Pay?

If your paycheque is smaller because of a mistake at work, here’s what you do:

1. Ask for clarification: Request a written explanation for the deduction.
2. Check your pay stub: Confirm waht was taken and when.
3. Look at your contract: Review anything you signed. Was there written consent for this specific deduction?
4. Speak to an employment lawyer: You may be owed money back – and possibly more if your rights were violated.

Quick Summary

• Employers can’t deduct wages for mistakes without written consent.
• Even with consent, deductions for till shortages, broken tools, or errors are often illegal.
• The ESA limits deductions to those required by law, cour orders, or written authorization.
• If you’ve been docked pay for an error, you’re entitled to compensation.

Talk to an Employment Lawyer in Ontario

If you believe your employer has made a significant unauthorized wage deduction, don’t ignore it. At Samfiru Tumarkin LLP, we’ve helped over 50,000 non-unionized employees in Ontario get back the money they’re owed – and much more.

Whether it’s a wage deduction, missing pay, or a severance issue, we’re here to help.

⭐ Over 2,000 Five-Star Google Reviews

Our team of employment lawyers are trusted across Ontario for clear advice, fast results, and no upfront fees for most employment matters (eligibility may vary).

You can use our Pocket Employment Lawyer to get quick answers about your rights, or try the Ontario Severance Pay Calculator to estimate what you’re owed.

Take the first step today

Call 1-855-821-5900 to speak with an Ontario employment lawyer, or fill out our confidential online form.

FAQ Section

Can my employer deduct money from my pay for a mistake?

In most cases, no. Under Ontario law, employers can’t deduct wages for mistakes like errors at the cash register or broken equipment unless you provide written consent.

Is verbal consent enough for wage deductions in Ontario?

No. The Employment Standards Act requires written authorization for any deduction not mandated by law or court order. Verbal agreements don’t count.

What if I signed a general policy allowing deductions?

A blanket policy signed at hiring is not valid under the ESA. Consent must be specific and written after the incident or clearly outline the deduction amount.

Can my employer charge me for missing money or equipment?

Generally, no. Employers can’t deduct for cash shortages, lost tools, or damage unless it’s proven you were the only one responsible—and you consented in writing.

What should I do if my employer takes money from my pay?

Document the deduction, check your contract or policies, and speak with an employment lawyer. You may be entitled to repayment or additional compensation.