Can an employer deduct loan repayments from an employee's pay while the employee is receiving statutory sick pay (SSP) or statutory maternity pay (SMP) instead of their normal salary if the employee gives their express consent to this? Even if permitted, could there be any maternity/disability discrimination issues?

Under section 13 of the Employment Rights Act 1996 (ERA 1996), an Employer cannot make any deductions from the wages of a worker unless:

1. •

   the deduction is required or authorised to be made by virtue of:

   1. ◦

      a statutory provision, eg the requirement to make deductions for income tax or National Insurance contributions via Pay As You Earn, or

   2. ◦

      a relevant provision of the worker's contract, eg where the employer provides a Loan to the worker and has a contractual right to take money out of the worker's wages in repayment, or

2. •

   the worker has previously signified in writing their agreement or consent to the deduction (ERA 1996, s 13(1))

Statutory sick pay (SSP) and statutory maternity pay (SMP) are included in the definition of ‘wages’ for