Where a company employs a number of union members, it may agree to deduct membership subscriptions from employees' wages and pay these over to the union. There are advantages and disadvantages of operating a 'check-off' system of this kind:
A check-off system can provide the employer with information on the extent of union membership, although it will give only a partial picture, as many members choose to pay their subscription by other means, such as direct debit.
An employer can offer a check-off arrangement as a positive concession to the union in the collective bargaining process.
Setting up a check-off arrangement involves administrative costs, including the expense of making computer payroll changes. On the other hand, the union might agree to contribute towards the costs of operating the system.
A check-off system could potentially halt or reverse a decline in union membership levels.
Check-off contributions are a regular flow of money into union funds, some of which may be used for purposes that do not benefit the employer, such as strike pay.
A company cannot lawfully deduct union subscriptions from a worker's pay unless it has the worker's written authorisation to do so. If a worker writes to the employer withdrawing his or her authorisation, the employer must stop making the deductions as soon as it is reasonably practicable to do so. A specimen check-off agreement and authorisation form can be found elsewhere in this Guide ( Check-Off Agreements and Authorisation Form ).
The protection from unauthorised deductions applies to 'workers'. It therefore covers not only employees but also those who work under any other form of contract personally to perform any work. Only those who are genuinely in business on their own account are excluded. Some casual or homeworkers who do not have employee status (homeworkers ) may therefore be covered.
If an employer operates check off, it should ensure that the deduction is mentioned on the employee's pay statement (itemised pay statement ).
If a union wants to spend money on political objectives, it must set up a separate political fund. Its members can opt out of making contributions to this fund, sometimes referred to as the 'political levy'. If an employer that operates a check-off arrangement is told by a union member that he or she does not contribute to the union's political fund, the employer must ensure that no political levy is deducted from that member's pay.
It is automatically unfair to dismiss an employee, or to select an employee for redundancy, for enforcing his or her right not to have unauthorised union subscriptions or the political levy deducted from his or her pay, or for alleging that the employer has failed to respect this right. This applies regardless of the employee's age or length of service.