Can a Company Deduct Loan Payments from Salary? Understanding the Legal Boundaries

Dear Senior, there is one worker who is taking a personal loan from the bank, and he wants an undertaking letter from the company. There is one clause stating that if he does not pay the EMI/loan, the company will deduct the amount from his salary.

Minimum Wages Act Clause Inquiry

Is there any clause in the Minimum Wages Act related to that? Please forward me the information so I can convince the employee that we cannot provide such an undertaking letter as per the Minimum Wages Act.

Regards,
Ujwala

I have a problem with forms regarding a letter of undertaking. Can you please help me by providing guidance on how to state that the company will not be solely responsible for any debts arising from employees' risks?

Thank you.

Regards,
Mr. Gold