• Minimum wage - salary to be deducted if employee owes

Dear sir,

I work in a pvt company in Bangalore, and I owe some money to the company (they gave me as advance). I accepted that it's my mistake to use all the money and also requested for salary credit for 3 months continuously so that I can apply for loan and pay off the company. 

I am not receiving any salary from 3 months so, wanted to know is this right thing the company is doing? Because as I read in minimum wages act 1948 no employer shall deduct more than 50% of salary amount for that particular month.

My question is, does this law apply to private companies? (Vodafone India shared services pvt ltd)

Please help
Asked 9 years ago in Labour

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9 Answers

My question is, does this law apply to private companies? (Vodafone India shared services pvt ltd)

This law is applicable to private companies too. Nobody is exempt from labor laws.

If the company is arbitrarily doing this, you may first make a representation seeking relief of 50%salary after deducting 50% towards the advance amount paid to you, if the company is not acceding to your request/representation, you may issue a legal notice but for that you have to be prepared for the consequences the company may plan to initiate against you in retaliation.

Conslt a labor law practicing lawyer in the local and proceed as per his advise on all such further issues.

T Kalaiselvan
Advocate, Vellore
86915 Answers
2331 Consultations

1) under payment of wages act employer is entitled to deduct from salary recovery of advances and interest, and adjustment of overpayment;

2) However, as mentioned in section 7 of the Act, the total amount of deductions should not exceed 75% of wages of the employee in any wage period if whole or part of the deductions is meant for the payments to cooperative societies. In other cases it should not exceed 50%

3)the act is applicable to Factories, industrial Establishments, Tramway service or motor transport service, Air transport service, Dock, Wharf or Jetty, Inland vessel, Mine,

quarry or oil-field Plantation, Workshop, construction activities or other

establishment etc.

• In the state of Maharashtra the Act is extended to Shops & commercial

establishments.

Ajay Sethi
Advocate, Mumbai
96716 Answers
7797 Consultations

The company can recover its money from you by setting it off against your salary even though the minimum wages act applies to private companies also. It has to pay salary to employees (employed directly or through a contractor) equal to /above the amount mentioned in the notification.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

1. You are right. Your Company can not deduct more than 50% of your salary on account of recovery of the advance made to you,

2.The law is applicable to private companies also as well.

Krishna Kishore Ganguly
Advocate, Kolkata
27421 Answers
726 Consultations

Hi, you have to file a complaint before the labour commissioner as your employer is not paid any salary to you and they will call for conciliation and if the conciliation is failed they you have to approach labour court.

Pradeep Bharathipura
Advocate, Bangalore
5611 Answers
338 Consultations

1) you have good case on merits .

2) you wont face any consequences as the results of litigation depend upon merits of the case

3)legal fees vary depending upon lawyer engaged by you

Ajay Sethi
Advocate, Mumbai
96716 Answers
7797 Consultations

1. It will not be prudent on your part to take your Company where you are working to Court for this trivial issue,

2. You may be officially harassed and made to resign,

3. After you are made to resign, you may not get a job since your prospective employer will be given adverse report about you which you will never come to know,

4. The expenses may be half of the amount they have deducted from you and here you are not claiming any money back but want them to deduct 50% of your salary.

Krishna Kishore Ganguly
Advocate, Kolkata
27421 Answers
726 Consultations

The law is common to everyone.

A MNC or a multi million company cannot claim any exemption on its size or influence.

You have rights to sue the company and the company is answerable to reply to summons received from or any authority in this regard.

There is no question of fear against the mammoth organisation if you want to achieve your goal.

The ball is in your court, so even before initiating any process do not be discouraged thinking about various things that de-motivate you.

T Kalaiselvan
Advocate, Vellore
86915 Answers
2331 Consultations

Look you should keep in mind that litigation requires deep pockets and patience as the lawyers charge you their fee which may be beyond your means and the courts do not deliver the judgment at the throw of a hat. In short, it requires financial and mental preparedness. The expenses will be the fee of your lawyer, which you verify from the lawyer whom you wish to engage.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

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