Can My Employer Make Me Pay for Damaged Equipment in Ontario?
It is a common concern among employees: What happens if you accidentally damage company equipment? Can my employer make me pay for damaged equipment? Can they take the money directly from my pay? In Ontario, the answer depends on several factors, including the terms of your employment contract, the policies in place, and the protections under the Employment Standards Act, 2000 (ESA).
Deductions from Wages: What the Law Says
Under the ESA, employers can only make deductions from an employee’s wages in limited circumstances, such as:
- The employee has provided written authorization for a specific deduction;
- The deduction is required by law (such as taxes or garnishments);
- The deduction is a court order or authorized by a statute.
Even if the employee signs a general authorization to cover losses or damages, the Ministry of Labour has made clear that deductions are typically not allowed if the loss is due to faulty work, damage, or a cash shortage—unless the employee was the only person with access and there is clear evidence of intent or negligence.
What About Damaged Equipment?
There is no specific law in Ontario that says how employers must handle damage to company equipment. It is typically addressed through workplace policies or employment contracts. However, even if a contract says an employee must pay for damage, an employer still cannot simply deduct the amount from the employee’s wages without meeting the ESA’s requirements.
Employers may choose to pursue repayment through other means (for example, small claims court), but self-help remedies—like docking pay—are not permitted unless the strict ESA criteria are met.
Policy Versus Law
Many employers include policies about equipment use and responsibilities, but policies do not override ESA statutory rights. A policy may explain how the company expects employees to treat equipment and what steps will be taken in the event of damage, but it cannot authorize deductions that would violate the ESA.
What Employees Should Know
If you accidentally damage company property, speak with your employer. A fair and open conversation can go a long way. However, if you are being pressured to pay or are facing wage deductions, it may be time to speak with an employment lawyer. Employers must act within the limits of the law, even when costly equipment is involved. Employees in Ontario are protected from unfair deductions, even when mistakes happen.
If you have concerns about a workplace issue, you should speak with an experienced employment lawyer. To better understand your employment rights, we encourage employees and employers to seek legal advice. We at Whitten & Lublin are happy to provide insight and advice into your specific circumstances. If you are looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today.
Author – Rachel Patten