Pay deductions must also correspond to relevant pay periods

Farley v MKR Capital Pty Ltd [2025] FCA 1171

MKR Capital withheld amounts from an employee’s April pay for tax and superannuation that should have been withheld from earlier payments, in February and March. The court observed that an employer cannot withhold from a later payment an amount that should have been withheld from an earlier payment.

Once an employee receives their full pay, the opportunity to withhold is lost.

This is a relevant decision for employers making any adjustments based on errors or overpayments.