A newsagent asked me yesterday if they could deduct end of shift cash shortages from employee pay? I advised I’d never done it but didn’t know the law.
searching online I found an excellent website, Workplaceinfo, with this advice:
6. Cash shortages
Another common problem is cash shortages by employees whose duties include the handling money.
Generally, the employee cannot be held responsible for the repayment of any shortages which may occur unless the employee has sole access to the money.
An award or agreement may make provision for recovery of any shortages, however, a proper investigation would still need to be conducted by the employer to determine the guilt or innocence of the employee.
The absence of such a provision does not affect the employer’s right to take such disciplinary or legal action as the employer considers necessary.
So it comes down to what you have agreed with your employees. It starts with what is in the contract, what is in any applicable award and the rules of the business. Plus it relies on the evidence you have and the process you go through to determine who is at fault.
The key is to have a structured end of shift process that leaves little to chance and everything to documentation. The more you use a consistent system or process for managing money and data in your business the easier it is to handle cash shortages. Sloppy processes lead to mistakes and undesired costs.
For more reference, check out the University of Southern Queensland’s policy on cash floats.