Can an employer fine an employee for misconduct?

There are a number of potential hurdles that could face an employer trying to enforce a contractual clause that allows them to fine employees and deduct those fines from wages. The first is that the clause may be considered a penalty clause. The general rule against penalty clauses means that such a clause would be unenforceable if the detriment is out of all proportion to any legitimate interest of the innocent party in the enforcement of the primary obligation, particularly if it doesn’t bear any relation to the loss suffered by the employer as a result of the breach.

Secondly, it is possible that the enforcement of a clause which involves fining employees for misconduct could be