Please, can someone advise on this issue? I am working in a private company. I was paid some extra allowance by the airline which I was not aware of in a period of one year. They have deducted my entire salary this month to make the recovery without intimation. Is it legal to deduct the whole salary? They should have done this in installments and with details, but the same has not been done. Please advise.
From India, Delhi
Acknowledge(0)
Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
hi sir yes u can take legal action against them if you want I am advocate we can help you in this case u can contact us at 9868000935 or hanukaushikyahoo.com
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
If you were covered under the Payment of Wages Act, the answer would be simple: the maximum deduction from gross salary, including PF, ESI, etc., is 50%, so full deduction is not allowed. Furthermore, the deduction of excess paid allowances is considered a debt recovery, so it should fall under the other restrictions in the act.
However, I suspect you earn more than ₹18000 per month, so the act will not apply to you.
You need to read the standing orders applicable to the state where you work and understand the rules that apply in such a situation.
The question then arises: why was the allowance paid to you? It must have been listed in the salary slip, so you were aware of it. You can't claim ignorance. If the allowance was paid in error, it should be discussed, and recovery should be made in installments. However, if the allowance was paid due to a misstatement, manipulation, or fraud on your part, then the company is justified in recovering it in a single installment.
Your first step should be to speak with HR and your immediate manager to express your concerns about the unfairness of recovering the amount in a single installment. Now that it has been done, what resolution exactly are you expecting?
From India, Mumbai
Acknowledge(0)Amend(0)
2498However, I suspect you earn more than ₹18000 per month, so the act will not apply to you.
You need to read the standing orders applicable to the state where you work and understand the rules that apply in such a situation.
The question then arises: why was the allowance paid to you? It must have been listed in the salary slip, so you were aware of it. You can't claim ignorance. If the allowance was paid in error, it should be discussed, and recovery should be made in installments. However, if the allowance was paid due to a misstatement, manipulation, or fraud on your part, then the company is justified in recovering it in a single installment.
Your first step should be to speak with HR and your immediate manager to express your concerns about the unfairness of recovering the amount in a single installment. Now that it has been done, what resolution exactly are you expecting?
From India, Mumbai
Acknowledge(0)Amend(0)
See, the recovery of excess and undue money is right, but the process of recovery is not right. In case you go to court, what is the maximum that will happen? You may get some rupees as interest at the cost of your time, etc., and the company will be advised to be careful. Instead, it was your responsibility to check and reach the company at that time when this money came to your account due to somebody's mistake. Since there was a long silence on your part initially, courts normally do not encourage such moves, generally treating them as acceptable human errors.
Regards,
RDS Yadav
Labour Law Adviser
From India, Delhi
Acknowledge(0)Amend(0)
Regards,
RDS Yadav
Labour Law Adviser
From India, Delhi
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Deductions From Salary-sec.80 Items-checklist .docx
SALARY SHEET CALCULATION.xls