No deductions may be made from a worker’s wages unless:

• The deduction is allowed by law e.g. deduction of PAYE and NI
• The deduction is allowed by the worker’s contract
• The worker has agreed in writing to a deduction being made from his wages e.g. he has signed a loan agreement which provides for the repayments to be deducted.

A worker is widely defined to include anyone working under a contract of service, apprenticeship or who individually undertakes to do or perform work or services personally.