• Final settlement on resignation

I had worked in a pvt Ltd co for 11 years and resigned on [deleted]. During last 3 years of my service the employer was paying salary irregularly ( 2-3 months delayed) . Also Providend Fund and Income Tax deducted from my salaries were not deposited regularly during the last 3 years of service.

As per my appointment conditions I was to serve 3 months notice but I left with 2 months notice. 

Is it legal for the employer to deduct 1 month salary from my final settlement due to 1 month less notice? They have not followed the Payment of Wages Act and other acts on their part.
Asked 7 years ago in Labour

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11 Answers

Hello,

yes if there was a cluae of serving a notice period and if the same has not been served by you then the employer is at the liberty of deducting the salary in lieu of the Notice period.

If they have not followed the statutory obligations, then send a legal notice for the same and the file a suit for injunction and evoke appropriate remedy.

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

Q. Is it legal for the employer to deduct 1 month salary from my final settlement due to 1 month less notice?

Ans. The termination clause in your employment agreement will have to be perused to answer this.

As regards the issue w.r.t. to PF and Income Tax deductions, you may send a legal notice upon them calling upon them to do the needful, so that all your dues are paid/cleared forthwith.

Vibhanshu Srivastava
Advocate, Lucknow
9670 Answers
310 Consultations

The advise has been rendered taking this into consideration.

If they have violated the provision then it does not give you liberty to violate the provision.

You can not claim that one month salary as a matter of right.

In a court of law there is no defence that since he did wrong I should also be allowed to do wrong.

I hope you understand.

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

1) if you have not served 3 months notice period husband can deduct salary for shortfall in notice period

Ajay Sethi
Advocate, Mumbai
97230 Answers
7851 Consultations

In case they were the first ones to commit a breach of the employment agreement, they cannot expect you to adhere to the notice period, once the agreement was already breached by them.

Vibhanshu Srivastava
Advocate, Lucknow
9670 Answers
310 Consultations

The employer has fulfilled statutory obligations

Employer can deduct one month salary for failure to serve for 3 months as provided in the contract

Ajay Sethi
Advocate, Mumbai
97230 Answers
7851 Consultations

Respected sir..

If someone voilets the law there are number of penalties for that but you can not ans to him in the same manner ...You have to play your part in the eyes of law ..Sir if you want to punish him you have option available to go to labour court with your issues and that will be considered as your employer had violet the rules as per your joining letter and make him party there but you can not do the same in manner what he did to you that is illegal ... Choice is upto you what you want here weather contest against him or leave him....

Thanku

Dinesh Sharawat
Advocate, Delhi
1265 Answers
12 Consultations

Sir in your case you can approach the labour court or file money suit for recovery of money.

Johnu Kanta Bhuyan
Advocate, Guwahati
194 Answers
3 Consultations

For the grievances agaisnt the employer you can challenge the issue separately but that will not authorise you to take law into your hands to leave the job with two months notice,

The employer is right to deduct one month salary as per the conditions in the employment offer letter.

You can demand your dues separately and not to mingle that issue with this.

T Kalaiselvan
Advocate, Vellore
87429 Answers
2348 Consultations

But the point is at the time of resignation the terms of appointment were violated by employer. So in my opinion they cannot expect the employee to fulfill the notice period.

This is your understanding which has no meaning in law.

The law is different to your your thinking about it.

This is not a tit for tat game.

If you are aggrieved over the employer's attitudinal behavior you may initiate steps separately for getting your grievances redressed

T Kalaiselvan
Advocate, Vellore
87429 Answers
2348 Consultations

It is legal that employer deduct 1 months salary

P V Reddy
Advocate, Hyderabad
422 Answers
3 Consultations

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