PEI HR Toolkit » Setting Up a Payroll Account

What You Need To Know

The Employment Standards Act clearly outlines an employer’s responsibilities as it relates to:

Minimum wage
Vacation pay
Paid holidays
Breaks (Meal and rest)
Overtime
Piecework
Tips and gratuities
Termination of employment
Deductions for uniforms

An employer can only make certain deductions from an employee’s pay. They are:

required or authorized by law (e.g., income tax, EI, CPP)
agreed in writing by the employer and the employee
ordered by the court
the result of a previous advance of pay to the employee
a group benefit plan that the employee participates
an employee-requested contribution toward a savings plan
authorized by the Minimum Wage Order

An employer cannot deduct any of the employer’s business costs from wages. This includes breakage, damage to company property or loss resulting from a customer leaving without paying.

Why You Need To Know

Paying your employees appropriately is the law. Failure to pay your employees as required could result in employee turnover or could have legal consequences.