if union asked to deduct union fund to be deducted from employee salary in company payroll, is it mandatory?
From India, Visakhapatnam
No. It is not mandatory. It is up to individuals choice for the subscription of such deductions.
From India, Pune
Hi Nivas,
No, its is not mandatory. Such request usually comes from Trade Union whose members do not pay their agreed union funds in time. Besides, I would urge you to go through Trade Unions Act, which will give some insights on this body and their responsibility.
These Union Leaders just want to use your company infrastructure for their own goals. Forthwith reject such request with politeness and firmness.
wish you good luck
PS: Always let the union leaders know that the order came from somewhere above and never ever let them know, who gives the orders. Be absolutly discrete on union matters. Don't even discuss this with anybody and don't trust anyone.

From Saudi Arabia, Riyadh
Dear Friend,

Only certain deductions are permissible under 'The Payment of Wages Act'.

No authorization is required for Statutory deductions like Provident Fund, ESI, Professional

Tax, Income tax etc.

Any other deductions are to be made only after obtaining express written undertaking / authorization

from the concerned employees. The Union Membership fee could be deducted from the Salary/Wages of

employees provided that Management has signed an agreement to that effect with the union and all union

members have submitted their written consent to Management. Sometimes the Union insist the

Management to deduct and remit the membership subscription of their members. However one should be

careful before accepting such demand. Deduction and remittance of membership on behalf of certain

Union will prove that the said Union is only recognized Union. In case, in future, if there is dispute among

Union members regarding union membership this will create problem to Management. In a situation that

few members are willing to quit the existing Union, The Management would not be in a position to

discontinue deduction of Union Subscription fee of present Union.Before accepting and implementing

such demands from Union the Management should give very careful thought.

Legally speaking Management is not bound to accept such demand of Union. It is always matter of mutual

Understanding between Union and Management. However undertaking once signed could not be

discontinued till the agreement period is over.



From India, Pune
Dear friends,
Of course I agree with one and all, but, but when come to a unionised situation there are certain inherent/give and take matters which may warrant some mutual agreements. Legally employer is not bound but they are bound by certain bi/tri-partite agreements with union and when such deductions are mutually agreed upon there arises need to yield to pressure. I believe so long as the monthly deductions are kept within some reasonable amount say < Rs.100/-employees also may not make it a big issue. And how these unions are utilising this kitty is a different story.

From India, Bangalore
Dear Ksri_nivas

What you are referring to - i.e. "if union asked to deduct union fund to be deducted from employee salary in company payroll" - is a well-established Personnel (HR) practice in established big business houses, having recognized Unions.

In fact, this is also considered by Labour Deptt. as an authentic proof of the Membership of a particular Union when there is an issue relating to Recognized Union or Representative Union.

This practice is followed all over the Developed Industrial world. Here, the Unions request the Management for facilitating such deductions (union membership fees) from the salary of the employees.

An employee authorizes the management for such deductions by applying in a specified format.

This system is called the "Check - Off" system.

This system is relatively unknown to HRs in IT/ITES sector or in small private companies; as they do not have (or do not allow) any employees Union or such practices are discouraged in their companies.

Here's a link to the website of National Insurance Co. wherein the Circular is displayed. Hope this helps you in understanding and implementing such a system in your company.

<link outdated-removed> ( Search On Cite | Search On Google )

Do revert back in case you have any further queries on this.

Warm regards.

From India, Delhi

While it may not be mandatory under a law, in case of a recognized Union, it is customary condition of recognition that written communication from Union to deduct employees contribution in case of those union members of recognized union is deducted and given to Union. Ensure that request come from recognized unions only and that they give an annual list of their members, no deduction for those employees not members of the recognized union, and give the amount deducted to union only by a crossed cheque against acknowledgement. It will also be useful if you put a notice in the notice board about such request and you intention to deduct membership free from members of recognized union, so that in case of any objection from individual employees, that can be addressed.

In case you refuse to accept such request, union can only create difficulty for management and purpose of recognition is defeated. Do not look at every issues from the prism of law.

O. Abdul Hameed

Formerly Addl.Commissioner ESIC

From India, Coimbatore
Dear Sh Srinivas,
My colleague member Sh.Raj Kumar has rightly mentioned about the check off facilities.The 'Check-Off' is a procedure whereby an employer deducts union contributions directly from an employee's pay and pays the money to the union.I agree with my another colleague Abdul Hameed that this facility is normally is extended only to the Recognized union by the management. Though the Payment of Wages Act,1936 does not restrict the check off facility only to the recognized union, any registered trade union can ask for the same. The union has to obtained written consent from their members and submit authorization to the management.The list so provided by the union at the beginning of the year is not allowed to alter or change during in the year.It is an authorized deduction permissible under Section 7 (kkk) of the Payment of Wages Act,1936.
BS Kalsi
Member since Aug 2011

From India, Mumbai
If the Union related payments such as subscription, or any other matters related to cash, is totally illegal on the part of the management. It is proved that the management is in favour of the union in the company. If it is done, the unions will capture the management's activities and the HR Dept ., is to surrender itself to the unions. Union leaders will be running the company. Never! Never! Never! No labour law says that union activities payments to be deducted by the management.
From India, Pune
Dear We can deduct union fee ater written authorisation from concerned employees. Bharat
From India, Mumbai

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