Employer Deducted Money Without Consent: Do I Have Legal Options to Get It Back?

lost_Soul_SIN
I work for a product development company in the travel domain, and my prior experience was in Banking & Financial Services. Exactly 3 months after joining, one of our QA testers made live hotel bookings on the test environment without realizing it. Nobody realized the mistake, and finally, after 5.5 months, the client sent an email stating that during testing, we had made LIVE bookings totaling USD 638.

Subsequently, the management decided to retrieve the amount from the team, and HR initiated the negotiation process. I asked HR to provide me with the amount the management intended to recover from the team and who, in their opinion, constituted the team. HR mentioned that he would provide the necessary information and then left for campus recruitment.

My salary was credited on a weekend, and the following Monday, I checked the payslip only to find a term "Miscellaneous Deduction" amounting to 10,903 INR. Immediately, I contacted HR to confirm, and my worst fears were confirmed: the management had deducted from my salary without my consent. Upon checking with my team members, I discovered that the deduction had occurred only for me, with no prior notification or subsequent explanation.

I sent an email outlining the scenario, and a discussion took place, but it has been a week, and there has been no response. Adding to the irony, there were a couple of previous incidents where similar incidents had occurred, but the management had resolved them due to the small amounts involved (which I learned after this incident). However, the management failed to implement any checkpoints after the initial incidents to prevent such occurrences. Additionally, there was no communication regarding the previous incidents, which could have been beneficial now.

Furthermore, the management refuses to address this matter privately and opts to keep it under wraps.

Legal Recourse

Do I have any legal recourse to recover my hard-earned money?
tushar.swar
I understand your case. For any deduction from salary, there needs to be a declaration or intimation by the respective employees or the company; either side should provide the intimation or acceptance on the same. Without any intimation or declaration from employees about any deduction, it shall not be considered lawful. It shows an imposition on employees and unlawful behavior by the company.

I hope that you have not signed any documents specifying your guilt in such a mistake or declaring/undertaking/accepting a deduction of such an amount. If you have, you may escalate this matter to the management of the company. If you still do not receive a satisfactory response from them, you may file a case against them in the labor court or Industrial Dispute Court.

Regards,
Tushar Swar
korgaonkar k a
The decision of your company to recover the money from your salary towards the loss incurred by it seems to be unilateral and without following due process of law. The company has not adhered to the principle of Natural Justice by not providing you with a reasonable opportunity. You can challenge this action of your company and seek justice. However, since you are still in a continuing relationship with your employer as an employee, you may need to take a pause here.

Advice on Addressing the Issue

My advice to you is to speak with the CEO of your company and bring to his attention the injustice done to you by the company.

Wishing you all the best.
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