Can an employer make deductions from an Ontario employee's pay for cash shortages or damaged property?

Generally, no, not without meeting specific conditions under the Employment Standards Act, 2000. The ESA restricts employers from deducting wages for things like cash register shortages, faulty work, or damaged or lost property, particularly where the shortfall could be caused by circumstances outside the employee's control, such as shared access to a till or equipment used by multiple people. An employer generally can't simply decide unilaterally that an employee is responsible and deduct the amount from their next pay cheque.

A deduction can be permitted where the employee has genuinely and voluntarily authorized it in writing for a specific amount, rather than through a blanket clause buried in an employment contract that the employee signed without really turning their mind to it. Even with a written authorization, the deduction still can't be used in a way that effectively forces the employee to cover losses they had no real ability to prevent or control.

Because improper deductions are one of the more common ESA complaints the Ministry of Labour deals with, employers should treat this area carefully and get advice before deducting anything from an employee's wages for a shortage or damage, rather than assuming it's a routine business decision.