Unlawful deductions

In Australia, whether your employer can make you pay for a mistake depends on the circumstances and the specific laws and regulations in your state or territory, as well as your employment contract or agreement.

Generally, employers cannot deduct money from your wages or ask you to pay for mistakes or losses unless you have agreed to it in writing or it is allowed by a relevant award, agreement, or legislation.

In Australia, employment laws vary across different states and territories, but there are overarching principles that govern the relationship between employers and employees.


Fair Work Act (FWA)

The Fair Work Act 2009 is the primary legislation governing employment relationships in Australia. It sets out the minimum employment conditions, including wages, leave entitlements, and termination procedures. The FWA also established the Fair Work Commission, which resolves workplace disputes and sets national employment standards.

Modern awards & enterprise agreements

Many employees in Australia are covered by Modern Awards or enterprise agreements that outline the terms and conditions of employment specific to their industry or workplace. These agreements may include provisions regarding deductions from wages for mistakes or losses.

Unlawful deductions

The FWA prohibits employers from making unlawful deductions from employees' wages. Unlawful deductions include taking money from an employee's wages without their consent or making deductions that are not permitted by law, award, agreement, or court order.

Employment contracts

Employment contracts may include terms regarding deductions for mistakes or losses. However, any such terms must comply with the relevant laws and cannot override statutory entitlements or protections.

Dispute resolution

If you believe your employer is unfairly deducting money from your wages or making you pay for a mistake in violation of employment laws or agreements, you have the right to dispute the matter. You can seek assistance from organisations such as Fair Work Australia or consult with a legal professional who specialises in employment law.

State & territory regulations

Some states and territories in Australia have additional regulations regarding deductions from wages and employee rights. It's important to familiarise yourself with the laws and regulations specific to your jurisdiction.


While employers may have mechanisms to address mistakes or losses in the workplace, they must do so in compliance with relevant laws and agreements, and employees have rights and avenues to challenge any unfair treatment.

If you believe your employer is unfairly asking you to pay for a mistake, it's important to review your employment contract, relevant industrial award, and seek advice from a legal professional or contact Fair Work Australia, the government agency responsible for workplace relations.

Can my employer make me pay for a mistake Australia?

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Now that you know whether your employer can make you pay for a mistake in Australia, you should take a moment to check our current vacancies page.

At 11 Recruitment, we have a range of white-collar temp and perm jobs available. We're always on the lookout for top talent to place with our clients, so we encourage you to apply for any positions that are of interest.

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