(1) Except where it is expressly permitted by this Act or any other law, no employer shall make any deduction or make any agreement or contract with a worker for any deduction from the wages to be paid by the employer to the worker, or for any payment to the employer by the worker, for or in respect of any fines:
Provided that, with the prior consent in writing of an authorized labour officer, a reasonable deduction may be made in respect of injury or loss caused to the employer by the willful misconduct or neglect of the worker.
(2) An employer may with the consent of a worker make deductions from the wages of the worker and pay to the appropriate person any contributions to provident or pension funds or other schemes agreed to by the worker and approved by the State Authority.
(3) Upon the registration and recognition of any of the trade union specified in Part A of Schedule 3 to the Trade Unions Act, the employer shall-
(a) make deductions from the wages of all workers eligible to be members of the union for the purpose
of paying contributions to the trade union so recognised; and
(b) pay any sum so deducted to the union,
but a worker may contract out of the system, in writing, and where he has done so, no deductions shall be made from his wages in respect of contributions mentioned in paragraph (a) of this section.
(4) No deductions shall be made from the wages and salaries of persons who are eligible members of any of the trade unions specified in Part B of the Schedule 3 to the Trade Unions Act except the person concerned has accepted, in writing, to make voluntary contributions to the trade union.
(5) Deductions may be made from the wages of a worker in respect of overpayment of wages, but only in respect of any such overpayment made during the three months immediately preceding the month in which the overpayment was discovered.
(6) An employer shall, when making a payment to a trade union under paragraph (b) of subsection (3) of this section, include with such payment a list of the employees from whom deductions were made pursuant to paragraph (c) of the said subsection.
(7) Notwithstanding any other provision of this Act, the total amount of deductions that may be made from the wages of a worker in any one month shall not exceed one-third of the wages of the worker for that month.
Section 5 of the Labour Act in Nigeria
Act structure