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Kavita (software developer)     16 February 2013

Salary deduction without any reason

 

I have worked in a company where they deducted my salary from first month....in the first month they have deducted 5600/- from my salary which is 31.1% of my salary they have not payed me yet and when i asked them they are delaying it.

second month withheld amount is 18 % of my salary

Now i have resigned from there but they refused to pay me the amount that they held with them.

(i signed a contract with the company of 1 year and i was in probabation period of 3months)

they are saying now that u have breached the contract and so u owe the company 6 months remuneration.So pay the amount and leave.

now what should i do??

As per my knowledge the contract start after probation period. please help me out ..........

and the hw can i get the amount back... its my hard earned money.. please help me



Learning

 14 Replies

Ajit (SR.)     16 February 2013

please ask to them provide to you details of deduction - also check your form 26AS

 

 

Ajit yadav

Kumar Doab (FIN)     16 February 2013

You have posted that:

--“(i signed a contract with the company of 1 year and i was in probabation period of 3months)”

“As per my knowledge the contract start after probation period. please help me out ..........”

 

The job advertisement issued by company, offer letter, appointment letter, standing orders of the company, contract signed by you should be carefully looked into.

Don’t you have the copy of the contract signed by you?

Did you ever write to company under proper acknowledgment to supply you the copy of the contract they made you sign and did not supply the certified copy?

--“they are saying now that u have breached the contract and so u owe the company 6 months remuneration.So pay the amount and leave.”

 

First of all you may shift from asking, saying, telling in verbal mode to writing mode.

Submit your contentions in writing and obtain replies in writing.

--“Now i have resigned from there but they refused to pay me the amount that they held with them.”

Do you have the proof of delivery of resignation?

Did you resign with notice or without any notice period?

Has the company supplied you the acknowledgment of resignation and acceptance of resignation?

If company has not accepted your resignation then it might declare you absconding as well.

 

Apparently you have signed a service agreement/bond with the company and company has inserted clause on deduction of a fixed % your salary every month to obtain amounts equivalent to 6 month’s salary.

This document may be claimed as a proof of private agreement signed by you with the company to justify the deduction of wages.

 

What is the ground for creating the bond?

Has the company incurred expenses provided any specialized training to you adding to your specialized skills/qualification?

If yes company may stake a claim to recover the amounts however the amounts and restraint can not be arbitrary and company may need to justify it.

 

Has the company shown the deductions in salary slips issued to you?

What is this company a commercial or industrial establishment? The company and you are in which state?

You may go thru the SE act of the state.

 

You may approach a competent and experienced labor consultant/service lawyer with copies of all documents and give inputs in person and submit  carefully structured representations to good offices of your appointing authority, MD, Chairman, Company Secretary in writing under acknowledgment, and proceed further as per reply of the company and if company maintains studied silence.

Your lawyer may opine that the contract crafted by the company is in violation of standing orders, enactments’ applicable to it and in the state, void, arbitrary, unconscionable, unenforceable, coercive, unreasonable…….and that you are covered within the purview of a workman……..

 

In the meantime you may find the attachments useful.


Attached File : 948183227 417759075 validity of employment bonds.pdf, 948183227 background paper.pdf downloaded: 252 times

Manindra Singh (Chief Manager IR)     18 February 2013

Please check all the documents as advised by Mr.Doab. Thereafter, if there is merit in the case please take legal course of action against the company.

There is clearly two issues according to me:

1. Wrongful deduction from the salary\

2. Notice pay recovery / Contract amount recovery as per some contract

#1. File a case under section 33C2, ID Act or File a complaint againt the company before the Dy. Commissioner of Labour in your district under payment of wages act. Once you file the case and notice is served on the company they will try for reconcilation. Take appropriate call as you deem fit.

#2. Check the contract terms, appointment letter. Look for termination clause in all the documents, decide accordingly  as advised of Mr.Doab.

 

Regards,

MADHUSUDAN G R (Advocate)     18 February 2013

First, you have every right to demand explanation for the deductions made in your salary slip.

Second :  You cann't say as per yr knowledge etc., when u hv signed the contract.  You should hv gone thro' before signing the contract.  You should hv clearly told whether it is post probation/pre-pobation.

Third :  In General, any service agreement signed between the employee and employer will not stand in the court of law, as it  is termed as 'unilaternal contract', got signed by the employer as per his own terms and conditions.

Kavita (software developer)     21 February 2013

Thanks to all for their respective repliess.....

@Kumar Doab and @MADHUSUDAN G R : i wrote as per my knowledge bcz they have not written it clearly that contract starts from  this or that period but they orally communicated on the date of joining as "it starts after probation period" but on date of leaving the company they said it started on the date of joining... thats y  i wanted to clarify this hence wrote on forum.

1) Is it leagal to get signed a contract from an employee

2) Though the documents i have signed is on appointment letter one copy is with me (on which the head signed the copy ) & one with them (on which i have signed).

3) I have not signed on any legal affidavit, want to know whether it is bond or they just want to frighten us to stay with them for particular duration by signing on appointment letter (this is not clear so if any one can clarify it that will b good)

4)Deduction of salary during the service period is not mentioned anywhere on appointmenet and offer letter; But they have mentioned that if we leave the company during the contract period then we owe them 6 months remuneration.

5) @Kumar Doab:

"

First of all you may shift from asking, saying, telling in verbal mode to writing mode.

Do you have the proof of delivery of resignation?

Did you resign with notice or without any notice period?"

 

Sir have made sure that i will communicate with them in written only thanks for ur advice.

I have resigned without any notice period because they were not paying the said amount and they deducted my salary every month frm the month of joining, so i had to take this step

Whenever i used to ask them, they used delay it weeks by weeks; and the company is @ 2:30 min distant from my place and there was no particular time to get back to home; 

daily 8 hours shd b the working hours but this company asked me to sit and work for longer duration. I used to get back home by 12 / 12 :15 n then go to sleep and get up in the morning rushing to my office by 10 am (again there was threat if u do not come on time they will deduct the salary BUT THERE WAS NO EXTRA AMOUNT PAID FOR THE TIME WE USED TO SPENT WORKING THERE IN THE EVENING)

I have mailed my resignation letter but there was no reverting mail i got frm them.

HR person never reverted to my mails sent (even other collegues of mine also never got reverted mail frm HR)

After two days of resignation i again sent a mail asking for the pending amount and mentioned "please do reply to this mail"

then i got a mail saying u will b getting ur salary by this weekend  but again she sent a mail saying previous mail was an error n dont consider it "will need to talk to boss on this n after that will let u knw"

bt after then have not got any mail nor even call from them.

"Has the company supplied you the acknowledgment of resignation and acceptance of resignation?"

they have not 

 

 

"Apparently you have signed a service agreement/bond with the company and company has inserted clause on deduction of a fixed % your salary every month to obtain amounts equivalent to 6 month’s salary.

This document may be claimed as a proof of private agreement signed by you with the company to justify the deduction of wages."

 

No i have not signed any private agreement to apply deduction of my salary every month

and let me knw that signing on appointment letter will account to legal bond or not. If yes is there any way that i can get my money frm them.

 

"Has the company incurred expenses provided any specialized training to you adding to your specialized skills/qualification?"

 

No, they have also not given induction (ppt or training )also. Which is the prime most needed part for any employee joining the company.

 

"Has the company shown the deductions in salary slips issued to you?"

They have not given salary slips to us; we got only cheques that tooo with deduction.

"You may approach a competent and experienced labor consultant/service lawyer ............"

will definately do that sir

Kumar Doab (FIN)     21 February 2013

You have posted that:

--‘"You may approach a competent and experienced labor consultant/service lawyer ............"

will definately do that sir“

Approach your lawyer with elders in the family, competent and experienced well wishers, with copies of all documents, appointment letter and communications, give inputs in person and spend quality time with your lawyer, understand the remedies in various situations and proceed under expert advice of your lawyer. Let your lawyer structure and draft your representations and build record in your favor.

Based on the documents and your inputs let your lawyer’s opinion be final on all points discussed in this thread initiated by you.

--“they have not written it clearly that contract starts from this or that period”

Apparently it starts from date of appointment mentioned in appointment letter.

--“Is it leagal to get signed a contract from an employee”

The company shall claim that the employee signed by his/her will. The validity of any documents and its clauses is by test of law.

--“Though the documents i have signed is on appointment letter one copy is with me (on which the head signed the copy ) & one with them (on which i have signed).’

The clause on service agreement is incorporated in appointment letter.

--“I have not signed on any legal affidavit, want to know whether it is bond or they just want to frighten us to stay with them for particular duration by signing on appointment letter (this is not clear so if any one can clarify it that will b good)’

The consultants who craft such agreements, employer who get such agreements crafted as per specifications given by them, HR/line management who implements such instructions believe/know that majority of the employees are ignorant of their rights/are ill informed/can be subdued/won’t approach a lawyer/lawful authority/court of law and the matter is civil matter and they won’t be imprisoned. Hence they indulge with impunity.

Employees who agitate are subjected to a drill of tantrums/are coerced by flaunting denials of reliving letter/attestation of PF forms and adverse referral checks etc…..and again it is believed that many of the employees shall succumb to the pressure.

Employs that are properly informed are able to protect their rights without any damage done to them.

Still it shall be worthwhile for the employee to approach good offices and drill sense into the heads, and resolve the situation in his/her favor.

Employee should not limit his/her representations to line management and HR.

--“Deduction of salary during the service period is not mentioned anywhere on appointmenet and offer letter; But they have mentioned that if we leave the company during the contract period then we owe them 6 months remuneration.’

The deductions are hence unlawful, illegal, in violation of the applicable enactments e.g:

SE Act; e.g. SE Act Delhi:

19.  TIME AND CONDITIONS OF PAYMENT OF WAGES.

20.  DEDUCTIONS WHICH MAY BE MADE FROM WAGES: (1) The wages of an employed person shall be paid to him without deduction of any kind except those specified in sub-section (2).

(3) Any employer desiring to impose a fine on an employed person or to make a deduction for damage or loss caused by him shall explain to him personally and also in writing the act or omission…….

(4) The amount of fine or deduction mentioned in sub-section (3) shall be such as may be

specified by the Government. All such deductions and realisations thereof shall be recorded in a register maintained in a form as may be prescribed.

(5) The amount of fine imposed under sub-section (3) shall be utilised in accordance with the directions of the Government.

(6) Nothing in this section shall be deemed to affect the provisions of the Payment of Wages Act, 1936 (4 of 1936).

21.  CLAIMS RELATING TO WAGES.

Write to good offices for supplying the salary slips ( and claim that company has not been supplying salary slip, detail of deductions in writing despite representation made in office to Mr/Ms…….on dated……and dated….)

Salary slip should be supplied and signed by both employee and employer. ( Refer to section 13A in Payment of Wages Act which is given in next Para also.)

33.  RECORDS.

35.  INSPECTION OF REGISTERS AND CALLING FOR INFORMATION.

41.  WILFULLY MAKING FALSE ENTRIES

43.  DETERMINATION OF EMPLOYER FOR THE PURPOSE OF THIS ACT:

The registration certificate must be put on notice board and you can find out who is declared as Manager/Employer and accordingly you may take him/her in loop for issuing representations and notices.

2. Definitions: (8)  “employer” means

THE PAYMENT OF WAGES ACT, 1936:

2. Definitions:

3*[(vi) "wages" means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes-

3. Responsibility for payment of wages.

4. Fixation of wage-periods.

5. Time of payment of wages.

7. Deductions which may be made from wages.

8. Fines.

13A.

Maintenance of registers and records.

[13A. Maintenance of registers and records.-(1) Every employer shall maintain such registers and records giving such particulars of persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars and in such form as may be prescribed.

(2) Every register and record required to be maintained under this section shall, for the purposes of this Act, be preserved for a period of three years after the date of the last entry made therein.]

--“I have resigned without any notice period because they were not paying the said amount and they deducted my salary every month frm the month of joining, so i had to take this step’

You may claim in resignation or subsequent communications that since your earned wages were not being paid, salary slips were not being provided, unauthorized deductions were being made and good offices despite many representations did not provide any relief you has no other alternative but to give up your employment.

You are not at fault and employer should waive off the notice period and pay since misconduct is on part of employer.

30.       NOTICE OF DISMISSAL: Check what is your service period and notice period applicable as per the act, and claim the situation that is beneficial for you.

Notice pay is @ Basic pay + DA.

If company has mentioned any bonus, Gratuity in CTC sheet, claim it.

--“Whenever i used to ask them, they used delay it weeks by weeks; and the company is @ 2:30 min distant from my place and there was no particular time to get back to home; 

daily 8 hours shd b the working hours but this company asked me to sit and work for longer duration. I used to get back home by 12 / 12 :15 “

Rules prohibit employer to hold female staff for late evenings.

8. Employment of adults, hours of work.—No adult shall be employed or allowed to work about the business of an establishment for more than nine hours on any day or 48 hours in any week and the occupier shall fix the daily periods of work accordingly:

Provided further that advance intimation of at least three days in this respect has been given in the prescribed manner to the Chief Inspector and that any person employed on overtime shall be entitled to remuneration for such overtime work at twice the rate of his normal remuneration calculated by the hour.

COMMENTS

(a)    Mode for calculation of overtime wages

 

Claim for overtime should be made within reasonable time.( Claim that you have been asking for OT every month and defeat the claim of employer that employee was sitting in office by his choice.)

--‘I have mailed my resignation letter but there was no reverting mail i got frm them.”

Submit reminders obtain acceptance and avoid a situation where employer claims that you have been absconding /abandoned.

--‘No, they have also not given induction (ppt or training )also. Which is the prime most needed part for any employee joining the company.”

Apparently there is no justified ground to claim the validity of the agreement. However as already pointed out let your lawyers opinion be final and you may proceed under expert advice of your lawyer.

Some stated had granted blanket exemption granted to IT companies from the provisions of IESO Act, as per their IT/ITES policy. Some states did not.

You may check the status for your state, ands accordingly obtain certified copy of standing orders from company or DLC.

State of Karnataka has ended the blanket exemption granted to IT companies from the provisions of IESO Act and hence companies should frame certified standing orders in 6 months and get these certified from certifying officer which may be DLC in o/o Labor commissioner. Till then Model standing orders shall apply.

Model Standing Orders:

4.     Publication of working time , 5.       Publication of holidays and pay-days , 13. Termination of employment, 11.            Payment of wages

15.        Complaints., --16.        Certificate on termination of service.-, 17.    Liability of 17[employer].-- 18.           Exhibition of standing orders.--

The payment of wages and certificate of service should have been supplied to employee on last day in office or within two days.

The Labor Inspector may issue notice and this may work in your favor and your payments may be released and the matter may end.

The company may relent and yield to your representation to good offices, demand notice, Notice by Wages Inspector, Inspector under SE Act, and legal notice by your lawyer. The option to approach civil court is there too.

Valuable advice of learned experts/members is sought.

 

 

 

 


Attached File : 729793889 model%20standing%20orders.doc, 729793889 delhi shops & establishments act, 1954.pdf, 729793889 payment of wages act 1936.pdf downloaded: 280 times

Kavita (software developer)     21 February 2013

@Kumar Doab: Thank you very much sir for your valuable time and the advice.

i am working on ur advice.....

Kavita (software developer)     27 February 2013

@Kumar Doab: 

sir i have communicated with the company that , if they do not pay me the pending amount  that i would sue them in court and i also said that i would go to mahila mandal.

But in response to that companies legal Counsel had mailed me that on confirmation of that

"there will be no damage both physical and online to the company or its property and employees, at any point of time by you or any of the persons known to you would be taken up in the court of law, as you have already conveyed."

on confirming that they will release the amount.

 

Now i do not understand whether it is a trick or they will pay or soo..

Please advice me what to do 

Kavita (software developer)     27 February 2013

 

sir i have communicated with the company that , if they do not pay me the pending amount  that i would sue them in court and i also said that i would go to mahila mandal.

But in response to that companies legal Counsel had mailed me that on confirmation of that

"there will be no damage both physical and online to the company or its property and employees, at any point of time by you or any of the persons known to you would be taken up in the court of law, as you have already conveyed."

on confirming that they will release the amount.

 

Now i do not understand whether it is a trick or they will pay or soo..

Please advice me what to do 

 

 

please help me out...


(Guest)

Any opinion can be possible only after examination of contents of both the documents.

Kumar Doab (FIN)     27 February 2013

Learned Mr. Dhingra has given valuable advice.Kindly follow it and approach a competent and experienced labor consultant/service lawyer with all records and documents and proceed further under expert advice.

Dilip bhoyar (.)     13 May 2014

Sir,

I want help from yor side, I signed agreement for purchase of property  Rs. 10 lakh and I was paid of Rs. 7.50lakh Advance  (Rs.1.90,Cash andRs. 5.60000/- by cheque and transfer of bank account of party) now he is  denie  to registered the property and he told me its not my signature and he theretend me if i demand for money he will kill me by other person. I lodge the FIR in the name of party but police gave me letter to sole your problem in the court it is matter of court not for police. what can do please some body advice please.

DigiLawyer   21 August 2024

We are sorry to hear about your situation.

Legal Remedies:

Review the employment contract: Carefully review the terms and conditions of your employment contract, particularly regarding probation period, salary deductions, and breach of contract.

Consult with a labor lawyer: It is advisable to consult with a labor lawyer who specializes in employment law.

Communicate with the company: Engage in open and transparent communication with the company, expressing your concerns and seeking clarification on the reasons for the salary deductions and withholding of amounts.

File a complaint: If the company refuses to pay the withheld amounts and continues to demand payment for breaching the contract, you may consider filing a complaint with the appropriate labor department or authority in your jurisdiction. You can send a legal notice to your employer for unauthorized deductions and non payment of dues not mentioned in the employment contract, delay in salary payment, fraudulent actions by the employer, or termination without clearing salary dues. The notice can invoke provisions under the Payment of Wages Act, 1936, the Industrial Disputes Act, 1947, and the Companies Act, 2013.

For more legal advice on Salary deduction without any reason visit Digilawyer

Team Digilawyer


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