Is It Fair to Deduct Processing Fees from My Final Settlement? Seeking Advice on Legal Steps

I was working for a company in Bangalore. During my full and final settlement, a certain percentage of my gross was deducted as "processing fees." Please let me know if it is right and what can I do to revert the amount lost from my final settlement.

I was on a 3-month notice period. I had given my resignation on Sept 15, 2009, and I was relieved on Dec 14, 2009. They paid my September and October salary but kept my November salary on hold and paid 45 days' salary on Dec 14, 2009. They deducted the processing fees from my 45 days' salary instead of the last 14 days' salary. The amount that goes is very high. Please let me know if it is the right way of doing the final settlement. What legal action can be taken?

Hi,

Have they told you what kind of processing fee they have deducted? As per any law, no such fees are deducted. Is there any clause mentioned in your appointment letter?

Regards,
Harshad

Dear Harshad,

It is not mentioned in the appointment order, but it is stated in our company policy. I wanted to know if, as per the labor act and rules, it is right for an employer to do this to an employee. They have mentioned it as just "processing fees" and nothing else (what kind of processing fees, why are they deducting) about it has been mentioned in the policy.

Before getting the FF cheque, you can check the total earnings and total deductions. Get it clarified from HR. There is no such deduction as a processing fee.

When I went and asked my HR, they indicated processing fees as other deductions on my payslip. However, I am aware that it is the processing fees that were deducted from my salary. Please let me know how I should proceed to claim my amount.