Hello My sister Currently Working at Tata Starbucks India She joined 15 May 2024 and she got salaries like 25k, 27k, 30k, 32k for 4 months all of sudden next month she got 14000 Inr and upon raising complaint companies hr and her store manager approached her asked to repay the amount which was over paid to her and they saying her salary is 14-15k and whatever amount which is overpaid to her has to returned and company is not coming to negotiate they saying she has 3 options to repay pay lump sum, 40% of salary each month or 6 months of salary everymonth. And they not agreeing on my demand of 3000 a month until its repaid how can she survive with 40% cut or 6 months without pay.. she is at minimum wages as per indian laws. They made my sister cry humiliated her and saying its her fault not companies fault
What is salary mentioned in the appointment letter issued by company
if salary has been over paid sister is bound to refund the same
it is company fault if they did not bother to check before paying your sister her salary
agree to deduction of 40 per cent t salary
Well, so far as public sector is concerned such excess payment by mistake is not recoverable.
In private sector this issue is to be guided by the agreement between the the two.
It is not sure what was the salary which was fixed at the time of her appointment.
if it was less than what was paid to her then she is liable to make the refund at the rate asked by the employer provided her original salary amount is not deducted by this refund process.
Company saying her salary has to be around 15k not more than that and she got 30k approx but the problem is in 14-15k with the deduction of 40% how can she survive in a metro city? That too at minimum wages i want company to deduct 3000 not more than that.
Your employment offer letter will be having the details of the salary offered to you with conditions thereon.
If you have been paid excess salary for one month then you have an excuse but you have been receiving an excess salary continuously for more than three months , that too exorbitant amount of more than double time of your salary.
In that case it indicates that there's something wrong somewhere , hence you should have been cautious about the extraordinary situation.
You are liable to return the excess amount and look for a convenient way as offered by company for complying with it instead of taking a legal route or agitating it at the cost of your employment.
Take wise decision at the right time.
You cannot dictate terms to company that deduction should not be more than 3 k
your request has been rejected by the employer
But She is ready to pay excess amount but currently she dont have money and now want reliable repayment solution. As per company now she should get 12k-15k so 3000 every month is still possible to deduct from salary but 40% and other repayment plans are unreal how will she pay rent food electricity everything with 7k-8k in hand in metro city.
she can take loan from her family members to meet her expenses .
it is the employer decision as to how excess amount pad is to be recovered from employee
You said that she was paid double or more of her salary for three months or more hence she has to adhere to the conditions offered by company.
She should risk losing her job by your adamant guidance.
If you don't obey or compromise there's a risk of losing the job in that case she will not have any money even for food then what will you do?
Think it wise and take proper decision
It is fault of accounting department of employer. Still you can recheck the service agreement, for any clause for situation of excess payment. If there is no such clause, as excess salary is with you, dictate terms with employer. Even God cannot recover from a person who does not have money. Tell them firmly you are ready for only 3K if they don’t agree, ask them to release you and will pay as and when you got money. They may threaten you with criminal complaint , but having paid willingly, they have no case against you.
Legal Grounds: Under Indian labor laws, an employer cannot force unreasonable repayment plans that would leave an employee without adequate means to survive. Deducting such a significant portion of a salary may violate the Payment of Wages Act, 1936, particularly concerning minimum wages.
Proposed Action:
Legal Remedies if Negotiation Fails:
Emotional Well-Being:
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Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.
Your sister should not be forced to repay the excess salary in a way that harms her livelihood. According to Indian labor laws, her salary must meet the Minimum Wages Act, and the company cannot demand unreasonable repayment terms. She has the right to request a fair repayment plan, like paying Rs. 3,000/month. If the company refuses to negotiate or treats her unfairly, she can file a grievance with the Labor Commissioner or seek legal help from a lawyer by sending a Legal Notice to challenge the repayment terms and unfair treatment. The company must act in good faith, and she cannot be held fully responsible for their error.
Dear Client,
It will, therefore, be imperative that her rights are carefully guarded under the labor laws and that proper handling takes place. According to the Payment of Wages Act, 1936, any company making deductions cannot reduce a worker's wage below the prescribed minimum wages of the concerned region or area. As her wage happens to be around the minimum, a 40% deduction might go against the labor laws. Advise your sister to formally communicate her willingness to repay the excess amount but on reasonable terms, like ₹3,000 per month, so that she is able to sustain her living expenses. If the company refuses to negotiate, she may go to the Labor Commissioner or even file a complaint with the Ministry of Labour and Employment based on the unfair treatment and possible violation of the minimum wage law. Document all communications with HR for evidence and seek legal advice to be able to effectively address the issue and protect her financial stability.
Hope you find this answer beneficial for resolving the dispute.
- The over payment of the salary amount is the fault of the company , and your sister cannot be forced to repay as per the direction of the said company, and it amounts to harassment.
- Your sister can lodge a complaint against the HR of that company for the offence of harassment
- She should give a written application to the company to allow her to pay the amount in installments of 3000.
- If refuse , then she can issue a legal notice to the said company .
They can’t deduct in such a way. They have to give a flexible return plan to her. They can keep her F& F benefits and allow her to pay in instalments. But it was also not right in part of your sister yo receive inflated salary for so many months above her fixed salary
