An employer may make deductions from a worker’s pay only if required to do so by:
- an Act (for example, taxes)
- a regulation
- a court order (for example, a child support payment)
- a collective agreement or a decree
- a mandatory supplemental pension plan
Any other wage deductions must be authorized in writing by the worker. The worker’s authorization must specify:
- the reason for the deduction
- the amount of the deduction
- the duration and frequency of the deduction
- any other necessary information
The worker may revoke their authorization at any time. They must do so in writing.
Deductions for costs associated with operating a company are prohibited. For example, debit card or credit card costs. Losses due to shoplifting, accidental damage to equipment or cash register errors may also be considered operating costs.
Voluntary retirement savings plan (VRSP)
A VRSP is a collective retirement savings plan that is intended to encourage all workers in Québec to save for retirement. The amount of the contribution authorized by the worker can be deducted from their pay.
An employer who employs 5 eligible workers or more on December 31 of a given year and 10 eligible workers on June 30 of the following year must establish a voluntary retirement savings plan, or the equivalent, and automatically enrol those workers in the plan.
To be eligible, workers must:
- be employees
- be 18 years of age or older
- be credited with 1 year or more of uninterrupted service with their employer
They do not have to do anything to enrol in the plan. However, they may decide to opt out of the plan.
The retirement savings plan established by the employer may, for example, be:
- a voluntary retirement savings plan (VRSP)
- a registered retirement savings plan (RRSP)
- a tax-free savings account (TSFA)
- a registered pension plan (RPP)
Once an employer has established a VRSP, all their workers, without exception, irrespective of their age and length of uninterrupted service, may ask to be enrolled in the plan. The employer is obliged to enrol them in the plan.
An employer who offers a VRSP must continue to offer it even if the number of workers in the company is reduced to fewer than 10.