Is it lawful not to pay the employee the amount of salary if he owes for the company?

During the audit of the business entity, the Labor Inspectorate found that on the day the employee was dismissed, the company did not make a final settlement with him. After charging from the employee compensation for 17 unused days of annual leave, salary for the month and indexation, the company manager kept the funds in the calculation for the laptop in accordance with the agreement between them to provide interest-free loan.

However, the Labor Inspector did not agree with the lawfulness of such actions of the company. According to the results of the audit, an act was drawn up, in which the violation of the society of art. 116 of the Labor Code and imposed on a partnership fine according to Art. 265 of the Code. It was noted that wage deductions may be made only in cases stipulated by the legislation of Ukraine (Article 127 of the Labor Code). And the presence of an agreement between the employer and the employee of the loan agreement is not a legally determined basis for the maintenance of the employee's salary or deductions from her.

In addition, Art. 29 of the Labor Code prohibits deductions from compensatory payments, including compensation for unused days of annual leave.

Then the company appealed to the court with a claim to cancel the relevant resolution. However, the Cherkasy District Administrative Court completely refused the satisfaction of the claim of the partnership.

The court noted that the current legislation does not provide for the right of the employer not to pay the employee on the day of his dismissal of all sums due to the presence of such an employee in arrears with the employer. An exception is the use of holidays in advance. Therefore, according to the court's decision, the Decree of the Office is lawful and can not be canceled (the ruling of the Cherkasy District Administrative Court of March 22, 2019 in case  № 580/174/19).

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