Management Consultancy
Hr Executive
Insolvency N Gst Professional

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Dear All,
I am working with manufacturing company as HR. We have union in my factory for worker staff & we pay the salary as per govt rules & regulation, now here union have there own society to provide loan to worker & union demand that, company has to deduct the loan from there salary & make payment to union welfare society regularly. Now my question is can we refuse this demand from union as company not providing any kind of loan to all staffs & workers. Is there any provision in act? Because we don't want to involve worker any kind of welfare demanding matter & why we should do this activity for union?

Pl refer Section7 of Payment of wages Act . Deductions which may be made from wages. This would be helpful.
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...
Section 7 (2) (j) allows deduction for payments to cooperative societies as approved by the Appropriate Government or any officer authorised by it on its behalf ..... and Section 13 specifies that the deductions shall be subject to such conditions as thee Appropriate Government may impose. So you can insist on the union to produce the approval and the conditions thereof before deduction is allowed. The point to be noted is 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 by, it appears there is some reluctance to start the deduction, but it is seen that that the cooperative societies encourage thrift and credit to the employees and helps the employees to get away from avaricious money lenders. You may consider this aspect too while deciding the issue.

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