Dear All,
I am working with a manufacturing company as HR. We have a union in my factory for worker staff, and we pay the salary as per government rules and regulations. Now, the union has their own society to provide loans to workers, and the union demands that the company deduct the loan from their salary and make payments to the union welfare society regularly.
Now, my question is, can we refuse this demand from the union as the company does not provide any kind of loan to all staff and workers? Is there any provision in the act? Because we don't want to involve workers in any kind of welfare demanding matter, and why should we do this activity for the union?
From India, Mumbai
Acknowledge(0)
Amend(0)
4I am working with a manufacturing company as HR. We have a union in my factory for worker staff, and we pay the salary as per government rules and regulations. Now, the union has their own society to provide loans to workers, and the union demands that the company deduct the loan from their salary and make payments to the union welfare society regularly.
Now, my question is, can we refuse this demand from the union as the company does not provide any kind of loan to all staff and workers? Is there any provision in the act? Because we don't want to involve workers in any kind of welfare demanding matter, and why should we do this activity for the union?
From India, Mumbai
Acknowledge(0)Amend(0)
Pl refer Section7 of Payment of wages Act . Deductions which may be made from wages. This would be helpful.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Dear Sir, I appreciate your revert but the thing is this is worker union personal society welfare facility, As we don’t want to involve but if any provision in act kindly elaborate...
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Section 7(2)(j) allows deduction for payments to cooperative societies as approved by the Appropriate Government or any officer authorized by it on its behalf. Section 13 specifies that the deductions shall be subject to such conditions as the Appropriate Government may impose. Therefore, you can insist on the union to produce the approval and the conditions thereof before deduction is allowed. It is important to note that with the cooperative society deduction, the total deduction should not exceed 75% of wages, and without the cooperative society deduction, it shall not exceed 50% of salary.
By the way, there seems to be some reluctance to start the deduction, but it is observed that cooperative societies encourage thrift and credit to the employees, helping them to avoid avaricious money lenders. You may consider this aspect while deciding the issue.
From India, Mumbai
Acknowledge(0)Amend(0)
By the way, there seems to be some reluctance to start the deduction, but it is observed that cooperative societies encourage thrift and credit to the employees, helping them to avoid avaricious money lenders. You may consider this aspect while deciding the issue.
From India, Mumbai
Acknowledge(0)Amend(0)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.