Is It Legal for Employers to Withhold Salary Deductions Like PLI? What Can Employees Do?

Hello, I am new to the HR field. I joined a small company six months ago. In our company, there is no PF & ESIC contribution provided. However, there is a salary deduction called PLI. The employer deducts 6% of the gross salary every month with a promise to refund double after one year. One of my employees completed five months and resigned, but now my employer refuses to pay any amount, including the deducted sum from his salary.

Legal Inquiry on Salary Deductions

So, my query is: Is it legal? If yes, how? If no, what should the employee do? Should he pursue legal action?

Thank you.

1. You or the affected employee can ask the employer about the nature and legal sanction regarding the deductions of 6% of gross wages and take action accordingly.

2. However, the deductions from the wages of employees are regulated under the provisions of the Payment of Wages Act, 1936 (Sections 7 to 13). In my opinion, if the employer is not in a position to provide any satisfactory reply, then the ex-employee or similarly placed employees can make a representation or take up the issue with the Inspector appointed under section 14 of the said Act and also comply with the procedure laid down under the appropriate rules framed by the appropriate government as defined under section 2(i) of the said Act.