One of my known people is into contract employment. The contract agreement is 3 months' notice. The contract also has a clause which deducts 50% salary every month from 1st month through 6 months as caution deposit if contract is broken. My question is? Is it legal to withhold the salary deduction. Doing so, the person is literally working half the salary for the first 6 months. Even if contractually this person gives 3 months' notice on 7th month and serves 3 months' notice period, she received only 50% of salary. It is only a hope that the 50% deducted salary will be paid after notice period. The question here is not about whether they return the deducted money but whether it is legal to deduct agreed salary. What right do the office have to deduct from the salary? What is the legal standing. I am sure, the deduction of this type is not correct and has no legal binding. Assume she/he is entitled for 10000 salary, and she receives 5000 for next six months. How can even commute to office with that money along with other basics like school fees etc. Think about loans and mental stress. Is the contract not exploiting with vague perception of getting decent salary? The salary breakup says basic etc, even the basic gets cut which is violation as far as I feel. Please offer LEGAL stand so that I can ask this person to seek legal remedy on the issue.
From India, Chennai

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.

Dinesh Divekar

Dear member,

The case does not relate to you. You have written based on the information provided to you by a third party. Let the person in question directly come to this forum and raise a query.

Even then also, we the members prefer understanding the verbatim of the contract or the appointment letter. The suggestions or opinions can be given once we go through the extract of the relevant portion.


Dinesh Divekar

From India, Bangalore

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server