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Anu (law)     16 October 2014

Can a company deduct salary of employee

Currently i am working as Branch Manager in a Company. As per company, i am in their Supervisor cadre with salary of around 40K per month. Due  to some dispute with customer, my company has decided to give compensation of around 1.4 Lakhs to customer. Also, management decided to deduct around  50 % of that compensation from salary in installments.

I wants to know whether  can a company deduct such amount from my Salary ? Can i approach any authority to get this amount . Will labour court is applicable for Supervisor Cadre and people with 40000 Rs per month salary. I am asking this because it is a big Limited Company and they must have also consulted laws before deducting this salary



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 3 Replies

Isaac Gabriel (Advocate)     01 January 2015

Was the deduction based on any disciplinary action.If so you can appeal as per rules.

Kumar Doab (FIN)     02 January 2015

Deduction from Earned Wages: NO:::Until or unless these are statutory deductions e.g. PF,ESIC,TDS etc....or  there is an explicit private agreement in writing between employer-employee...........

 

Deduction due to Executive Order: Is there any provision for such deduction in service rules and regulations/Conduct and Discipline Rules applicable to you? Usually company makes a reference of such rules/policies/service conditions in appointment letter,..........................Does standing Orders (certified................apply to the establishment and do they cover your designation)........

Does the Misconduct leveled against you feature in list of misconducts as per certified standing orders of the company? Do you have a copy?

 

 

If standing Orders are not certified go thru Model Standing Orders!

 

Has the company issued any Show Cause Notice,..........................conducted Domestic Inquiry and provided opportunity of Natural Justice to you? Do you have all docs related to the matter and dis you reply and prove your innocence?

 

Designation alone does not decide a person shall be covered by the def. of 'Workman' as in ID Act, 'Employee' as in (Name of the state) Shops and Commercial Establishments Act.......................and an able labor Law Consultant/Service matter lawyer may ask you a set of structured questions and may opine that you shall be covered.............  

 

Consult your able labor Law Consultant/Service matter lawyer with all docs on record in person..

Sudhir Kumar, Advocate (Advocate)     04 January 2015

agreed with above views.


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