Is It Fair for Management to Deduct Salaries Without Proper Notice? Seeking Advice on Labor Laws

Dear Knowledgeable Members,

I work in a reputed private security agency as a security officer at a global company in Bengaluru City, handling nearly 500 team members. Recently, due to manpower issues, which were already informed to the Security Agency management through a meeting and mail regarding these issues, we have been sourcing manpower to the company as per the Operation Manager's request.

However, the Branch Manager has accused my team members of not handling matters properly and has handed over warning letters to me and my colleagues, deducting 10 percent of our salary for the past two months. Due to this tactic, which I believe is unfair, I have shifted to a different branch.

Question on Management Policy and Labor Law

My question is, is the policy of the management correct? If so, what is the procedure or law being followed as per labor law? I need your help in this regard, and for other members like me.

Regards

Dear 123punchbala123,

You have dropped a few hints about the security company in which you work. It gives a fair idea about the company you are talking about. Before imposing a penalty or wage deduction, your company should have ordered a domestic enquiry. The circumstances under which the decision was taken should have been verified. If the enquiry was not conducted, then your company has faulted on this count. I recommend that you put in an application to the Head of HR or any other appropriate authority to review the decision. If the review was not in your favor, then you may put in an application to the Managing Director of your company.

By the way, the person who imposed the punishment of the salary deduction, is he an ex-defence officer? I ask this question because that company is absolutely dominated by ex-defence officers.

Thanks,

Dinesh Divekar

Dear Punchbala,

Help can be expected by sharing information and facts appropriately, which seem to be missing in the description of the problem. For example, you have not provided some vital facts in your description, such as:

1. Whether your offer/appointment order specifies that you would be responsible for providing manpower for security purposes.
2. Whether the Operation Manager's request to source manpower is in writing or verbal.
3. What fault has been attributed to you or your colleagues in the warning letter.
4. Whether the reason for not sourcing has been documented in writing for the 10% deduction from your salary.

Would you please like to share such information for suggesting an appropriate solution?

Dear Knowledgeable Members,

I am not able to give my company name, but it is an MNC. As per a Confidential Clause, I might be liable for prosecution. Moreover, adding to the details, there is already a shortage of manpower, and there are no week-off relievers right from day one in the company where we were deployed. I was also not given any warning letter or email that my salary would be deducted. Everything was communicated orally by my superiors.

I work as a security officer at present. My team was given tasks orally of sourcing manpower in addition to handling a very large assignment with nearly 7000 employees. My question would be, is it ethical for the company to resort to such measures, and if so, under what labor rules or laws is it applicable? Can I do something about this?

Thank you.

Prima facie, such deductions are irregular. Many companies treat outsourced security agencies in this fashion - unilateral deductions. Now it is up to the company concerned to reconcile or take legal action if they feel deductions are not in order.

Ms. Punchbala,

Is it not surprising that a company, particularly an MNC with a strong manpower of 7,000, operates solely based on oral communication? If, as per your statement, "as per the Confidential Clause I might be liable for prosecution," you are unable to take any action, even to protect your own interests by filing a case in the appropriate court regarding the unlawful deduction of your salary. You must bear with the arbitrary decisions and actions of your superiors. It is now up to you to suggest how the members can assist you when you are hesitant to disclose further details.

Regards

No one is asking you to reveal your company name. No one here cares for it. However, the post you have made is unclear on several aspects. You have not answered my questions nor the ones asked by PS. If you are expecting sympathy, you should be posting somewhere else like FB. Here, you should post about what help you need, as members here tend towards identifying solutions, both legal and practical. If you don't provide the necessary details of the circumstances, then you will not get an answer.

Based on what I have seen so far (and note - I still don't understand half of the matter) - yes, the company is correct in penalizing you for bad performance that is likely to affect their relationship with the client and possibly lead to the termination of their business arrangement.

Overview of the Payment of Wages Act

Section 7 of the Payment of Wages Act provides for deductions that may be made from wages, which shall be made only in accordance with the provisions of this Act.

Fines and Procedures

Section 8 provides for the imposition of fines. Section 8(2) specifies acts and omissions. Section 8(3) states that no fine shall be imposed on an employed person until they have been given an opportunity to show cause against the fine or otherwise, in accordance with prescribed procedures for the imposition of fines.

Other Relevant Sections

Section 9 addresses absence from duty, Section 10 covers damages and loss, Section 11 pertains to services rendered, Section 12 to recovery of losses, and Section 13 to payments to cooperative societies and insurance schemes.

Challenging Unilateral Actions

Unilateral action cannot be taken by the employer. It can be challenged before the authorities provided under the Payment of Wages Act 1936.

Regards,
RL Dhingra, Advocate, Labour Law Consultant

[Phone Number Removed For Privacy Reasons]

[Email Removed For Privacy Reasons]