Wrongful deductions

by • 17/01/2013 • GeneralComments (0)6

Q-4:     Explain Wrongful deductions.


The Payment of Wages Act has provided remedies for the prevention of unauthorized deductions. It has also laid down the procedure for the recovery of unauthorized deductions made by the employer. The procedure is as under:

Where the employer an application has made any unauthorized deduction can be made to the person appointed by the Government for this purpose complaining against such wrongful deduction. Such application can be made either by the employee himself or on his behalf by any legal practitioner, or by an official of a registered trade union. On receipt of such application the official shall hear the applicant and the employer and if he is satisfied that the deduction was not authorized or justified he can order the employer to return the amount to the employee from whose wages the deduction was made. The official shall also order the employer to pay penalty for making wrongful deduction.

Where the complaint is with regard to the delay in the payment of wages, the official can order for the payment of wages not paid so far together with a compensation which he deems fit under the circumstances.

Compensation can also be granted in case of a wrongful deduction not exceeding 10 times of the amount wrongfully deducted. In case of delayed payment the maximum amount of compensation can be Rs. 10. In the case of delay in payment compensation shall be awarded if the authority is satisfied that the delay was due to bonafide error, or the existence of bonafide dispute regarding .the amount payable, or any emergency occurred which made the payment impossible or due to some exceptional circumstances the payment could not possibly be make.

Where the application is found false, the applicant may be directed to pay a penalty not exceeding Rs. 50 to the employer.

Application under Section 15 can be made either by one employed person individually or collectively by the group of unpaid employed persons jointly if it is for the same wage-period. When the hearing authority has a number of such applications before it for hearing he can hear them as if there is only one application before it.

The application under section is can be made by one employed person separately or it cir be made by a group of unpaid employed persons jointly if it is for the same wage period. (Sec. 16)

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