If there is no written employer-employee contract, does the ER have to pay the EE till the last day of pay ?

Question

Say a person has engaged someone to work for them. The terms of engagement are only VERBALLY agreed upon - eg: Rate of pay, number of days of notice. The only documented proof of engagement is the payment made to the employee. Now if the employee quits after borrowing money that he has not yet given back to the employer, can the employer minus that amount of money from the employee's last check ? Once again the only documentation of money being borrowed is the transfer of money from the employer's bank account to the employee's account. Can the employer legally do that ? Also, if the employee quits before the required days notice period, can the employer deduct the losses from the employee's pay ?

Answer 1

In the absence of an authorization to withhold the loan amount, the employer would be on shaky ground if challenged.

Answer 2

Of course the employer can withhold the loan or advance from the employee's final pay. The employer cannot "fine" the employee for not giving the agreed notice but most certainly can hold back any funds due from the employee.

Answer 3

i would think so.