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Salary Deduction

(Querist) 13 November 2008 This query is : Resolved 
Can an employer reduce an employee's salary. The salary of an employee which is about say more than 60,000/- per month. If so, then under which act and if not then under which act? Are there any relevant judgments to that effect.
H. S. Thukral (Expert) 14 November 2008
Contract of personal services is a contract like any other contract. The terms of the contract can not be altered arbitrarily by one party. The recourse is terminate the contract and enter into a new contract.
The employer therefore can not reduce the salary arbitrarily. However if the terms of contract provide for such reduction in salary on performance appraisal, the employer can reduce the salary after giving an opportunity to the employee of being heard and defend himself.
mahesh kumar yadav (Expert) 28 November 2008
the payment of wages act 1936 gives certain provisions that when the employer can deduct the salary of employee, and when the employer is restricted to deduct the salary of employee, this act gave authorized deduction and unauthorized deduction of the salary ofemployee
EX- when employee took loan from employer then employer can deduct the salry and certain other authorized ways employer can deduct the salary of employee
B.B.R.Goud. (Expert) 10 March 2009
yes, i do agree with my learned friends.


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