Facing Salary Deductions After Termination: How Can I Legally Address This?

Termination and Salary Deduction Issue

I joined a private company on 25 January 2016 and worked there until 23 June 2016. The company terminated my employment based on my efficiency and deducted 15 days' salary, stating that they had invested time and money in me, thus having the right to deduct salary for the initial training period.

The company provided me with a 15-day notice period to hand over all my work to my reporting manager on 9 June 2016. I served the notice period and handed over all my work to my senior and reporting manager on 23 June 2016. After 60 days, on 23 August, the company called me for a full and final settlement, showing deductions and paying me only 8 days' salary. My June salary is due for 23 days, including 1 casual leave and 1 unpaid leave before the notice period served on 9 June 2016.

Nowhere was it mentioned that the amount would be deducted during the notice period or probationary period when the company terminates the contract. Please suggest the right course of action to take legal action against the company management. According to my calculations, my salary should be Rs. 11,500, but the company is only willing to pay Rs. 4,000.

Thanks and Regards,

Naveen Gupta

Apart from what Mr. Umakanthan has mentioned, do you feel that it is viable to hire a lawyer and fight a case for an amount of Rs. 7500/-?

Company cannot deduct 15 days' salary on the grounds that the company has invested time and money. You can always demand in writing before the company. However, please consider the factor that your due amount is very low when considering hiring a lawyer.

Before approaching the court, I recommend you approach the Labour Officer (LO) of the area where the company is located. Carry with you the original copy of the appointment letter and all other correspondence. Let us see whether the LO can solve your problem. Many times (but not all the time), LOs are helpful to the employee. Your case involves underpayment of wages, which does not stand the scrutiny of the law. Therefore, hopefully, the LO should be helpful to you.

The seniors have advised refraining from approaching the labor court. This is because you appear to be junior and not very aware of the dynamics of the Indian judicial system. The wheels of the Indian judicial system move at a snail's pace. The long settlements of court cases prohibit ordinary persons from taking the route of litigation. While you deserve to get justice for underpayment, to recover those unpaid wages, you could possibly spend far more by making 'n' number of rounds to the courts. Hence, their advice!

Thanks,

Dinesh Divekar

Dear Naveen,

Irrespective of the capacity in which you were employed, the employer cannot deduct unless there was an agreement to that effect. You have every right to claim from your employer the salary due.

Dear Naveen,

Our intention is not to pressurize you for not claiming your right, but going legal/court of law is not the only available solution. As advised by Mr. Dinesh, please approach the Labor Office who will guide you and help in claiming your salary. Any single day worked, the remuneration has to be paid, unless agreed upon certain terms.