Salary Deductions and Perks: Can Companies Cut Pay Due to Covid and What Perks Are Truly Covered?

Salary and Perks Clarity

1). Can salary be deducted in the name of Covid?

2). As a General Manager, it’s mentioned “Company car for official use.” So, from home to hotel and hotel to home, will this be considered official or personal?

3). In fully furnished accommodation, is electricity and PNG included?

Looking forward to your support and response.

Regards,
Sachin

Dear Sir, I work with five hotels as a General Manager. Before joining, it was agreed that for the first three months, there would be a 35% salary deduction. However, this deduction continued for six months under the pretext of no business. A fully furnished accommodation was part of my perks, but the owner provided extremely compromised accommodation, which I accepted, understanding his financial situation at the time. In return, he agreed to cover electricity and PNG bills as part of the accommodation. A vehicle for commuting was also facilitated as part of my package for official usage.

Now, after nine months, during my full and final settlement, the owner is reviewing the amount, which he probably does not want to pay. He is saying he will deduct petrol charges incurred for commuting between accommodation and hotel, as well as electricity and PNG line charges, because I am demanding payment for pending privilege leaves and non-deposited PF amount. All commitments were verbal. It’s all my hard-earned money. Please advise how I can get my complete amount without any deduction.

Since all the terms are oral, you have little to go by in proving that you were promised those terms.

Further, by accepting the 'sub-standard' accommodation, you have agreed to the changes in the terms of employment. Since there is nothing to show that it was temporary, you don't really have any way to recover the difference.

Providing rent-free accommodation does not automatically include payment of utility bills. That should be specifically stated in the terms. However, when the company asks for the reimbursement after 9 months, then it looks like an afterthought and the authorities would decide that in your favor. Transport provided by the company from home to office cannot be recovered from the employee unless there was a specific term in the contract that it is to be paid by the employee.

The hotel accommodation itself, claiming it back is definitely unfair. However, how you prove your point is the main issue here. Further, the only way is to go to court, which is an expensive exercise. The lawyer's fees alone would probably be more than the recovery.

With reference to leave encashment, as you have worked for less than a year, I am not sure if you are even eligible for leave. But without details of the location, terms of employment, standing orders, etc., it is not possible to say anything in favor or adverse to your claim.