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Ask a lawyer on the topic of Labor law

Can my employer withhold my salary payments if I have made mistakes?

Dear lawyer,

I am contacting you because I have encountered a problem in my current professional situation where I am unsure how to proceed. My name is Jens Schröder and I work as an employee in a medium-sized company. Lately, I have unfortunately made some mistakes that have led to financial losses for the company. Now, my employer has announced that he wants to withhold a part of my salary to cover the incurred costs.

I am worried whether my employer is entitled to withhold my salary, even if I have made mistakes. I am not sure if this is legal and what rights I have in this situation. Therefore, I am wondering if my employer is allowed to withhold my salary and if there are possible solutions to resolve this situation.

I would be very grateful if you could assist me with this question and provide me with information on how to proceed in this situation. I would like to know if my employer is within their rights and if there are ways to protect my salary.

Thank you in advance for your support.

Sincerely,
Jens Schröder

Bernhard Vollmann

Dear Mr. Schröder,

Thank you for your inquiry regarding the withholding of your salary by your employer due to errors that have led to financial losses. It is understandable that you may feel uncertain in this situation and would like clarity on whether your employer is entitled to withhold your salary.

In general, your employer cannot simply withhold a portion of your salary without a legal basis. This means that your employer would only be entitled to reduce your salary under certain conditions.

One possible legal basis for a salary reduction could be a contractual agreement between you and your employer, stating that errors leading to financial losses may result in a salary reduction. It is important that you review your employment contract to see if such a clause is included.

If there is no contractual agreement that justifies a salary reduction in your case, your employer could only reduce your salary under certain circumstances, such as in the context of a warning or contractual liability for damages.

In any case, I recommend that you first contact your employer and have a discussion. Clarify together why your employer is considering a salary reduction and if there are possible solutions to cover the incurred costs in a different way. If you cannot reach an agreement, I strongly advise you to seek legal advice to clarify your rights in this situation and potentially take legal action.

I hope this information is helpful to you and wish you success in resolving this matter.

Best regards,
Bernhard Vollmann

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Bernhard Vollmann