Employment Claims Tribunal rules in [2026] SGECT 12 that substantive equitable set-off cannot circumvent Employment Act 1968 protections against unauthorised salary deductions.

The Tribunal held that allowing substantive equitable set-off would undermine the statutory framework of ss 26(1) and 27 of the Employment Act 1968, which specifically authorises only particular deductions. Employers cannot rely on general equitable principles to withhold salary where statute provides exclusive mechanisms.

Why it mattersEmployers cannot bypass the Employment Act's strict deduction regime by invoking equitable set-off; statutory protections for employees' salary rights are paramount.