Hi,

My wife has joined an international school as a teacher for the Junior section. She was offered a salary of $12,000 per month. However, after her first month's salary, I noticed that they do not credit her salary through the bank; instead, it is given to her in hand with a deduction of 24%. They claim that a payslip cannot be provided, and they have not given her the PF number. Additionally, I did not receive any compensation letter along with the offer letter. Please suggest how to proceed with this situation.

Thank you.


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This is the way in which about 95% of "International" Schools function in India. They are neither international by curriculum nor by administration. How could you describe these schools as International Schools? They may have English-speaking teachers, there may be a system that no student would be permitted to speak Hindi or the local language, and the fees that they charge would be equal to the one charged abroad. But there will be no system for recruitment of faculty, fixation of and payment of salaries to them, etc. In most cases, the only criterion would be that the person should be good in English speaking and should come from a wealthy family so that they would not demand much or go for collective bargaining.

Coming to the situation, the basic thing to be considered is whether the state where this school is situated has any minimum wages (salary) fixed for private unaided schools. If no such notification exists, you cannot demand a fair salary. Again, in the absence of an appointment order showing clearly the compensation, we cannot say that we are underpaid. Now, if there has been a verbal agreement that the salary would be Rs 12000 and there happens to be a deduction of 24%, then it should be PF contribution from both, i.e., the employee and the employer. That is illegal and can be addressed. But what would be the end result? You will get a termination letter and they will get another person with a Rs 10000 salary. This is because this is the only industry, I feel, where we can get labor (Skilled and NOBLE labor) with even less than Rs 5000 per month.

Madhu.T.K

From India, Kannur
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So-called International schools come under the Shops & Establishments Act. They have to follow PF from day one. Now, the legal issue is not that they deducted 24% from a 12K salary; they can refer to the 12K as CTC (Cost to the Company). The current legal issue is that under the Shops & Establishments Act, they have to maintain and provide an Appointment Letter (Form-Q in some states) and also a payslip for every month to all employees. These school administrations have violated these two requirements. You can now go to the Local District Labour Inspector of your district with proof of work (such as a snap of the attendance register) to launch a complaint.
From India, Hyderabad
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The issue with the school management may not be ignorance regarding the application of the law but rather how to navigate these laws. I recall when the ESI scheme was extended to schools affiliated with CBSE in Kerala, the managements of these schools contested the decision of the Government of Kerala (as the authority enforcing the ESI Act). They argued that they fall under the control of the central board of secondary education and questioned whether the service rules for employees should align with their directives. I am unsure if there are any service rules applicable to those employed in such schools as outlined in the CBSE norms. However, the Court ruled that the Board should oversee the academic aspect only, not the service conditions of teachers. Hence, the Government's decision to apply the ESI scheme to employees of these schools stands binding on CBSE-affiliated schools. Similarly, PF and other labor laws are equally enforceable in these schools.

Even gratuity payment, which was previously unavailable to teachers (only administrative staff were entitled to gratuity), was extended to teachers following a Supreme Court ruling that recognized teaching as a 'noble profession.' This change was achieved through an amendment to the Payment of Gratuity Act, applied retrospectively. It seems unlikely that the management of such lucrative businesses in India remain unaware of these regulations. They may perceive their situation as acceptable due to the abundance of labor supply, the perceived nobility of the profession, and the respect accorded to teachers, enabling favorable bargaining conditions. Consequently, teachers often find themselves underpaid and face delays in receiving their wages from the so-called Managers, even in states like Kerala where labor law enforcement is relatively advanced.

In an international school setting, teachers might not need to scrutinize their salary components and could potentially receive more respect from the 'Managers.' While there may be opportunities to rectify these irregularities, ultimately, the employees bear the brunt as the labor supply remains high, allowing management to easily find replacements at lower rates. Therefore, before pursuing legal action against such management, it is crucial to consider the implications carefully and approach the Labor Department only if confident that the Officer is not aligned with the management's interests.

Madhu.T.K

From India, Kannur
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I hope the salary fixed consists of all benefits (CTC). That is why they deducted employee as well as employer contributions of 24% from the salary. You should have asked for clarification while fixing the salary. It is not wrong at all. Nowadays, all the employers are fixing salaries like this. Anyhow, please get clarification from the management on whether it was wrongly deducted or as I explained.
From India, Hyderabad
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I DO AGREE WITH MR MADHU, IF YOU WANT TO TAKE THE RISK OF LOSING YOUR WIFE’S JOB YOU CAN GO AHEAD WITH LEGAL.
From India, Ahmadabad
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1. Sir, as discussed by Madhu Ji above, it is well known that to get the benefits under various labor laws in this country is very difficult, especially for female employees. In this citeHR many times, women employees who want to avail maternity benefits explain the manner by which their services were terminated by employers upon hearing that the woman employee will claim maternity benefits. A female relative of one of my friends did not claim maternity benefits due to the reasons that the school where she is employed is an English medium school and she was warned against claiming such benefits.

2. The issue to be examined under these circumstances is how a woman employee can save her job and also get the benefits to which she is entitled as per labor laws. The Labor Department, I think, will hardly come to the rescue of a woman employee who is neither given an appointment letter nor provided with any terms and conditions of employment in written form.

From India, Noida
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What was the exact amount of salary of your wife? Rs. 12,000/- per month in hand or after deduction, or was it calculated as CTC. Please note that the salary cannot be reduced at the whims of the employer, whether it is bank deposited or paid in cash. The employer cannot deduct the employer's share of PF from the salary too. Keep asking for the payslip and PF number (in writing so that it can be proved later) from the authorities of the school. If they don't provide the details of the PF, you can consider approaching the PF commissioner.
From India, Kolkata
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