Dear All, I work in the manufacturing industry, where I deal with employee grievances throughout the day. Apart from that, I handle attendance and payroll at the end of each month. My salary is $15,000, and I initially expected to receive this amount monthly. However, after all deductions, I am only taking home $12,500. When I inquired about this discrepancy, I was informed that I am on a cost-to-company (CTC) model, which was not mentioned to me when I joined. Furthermore, there are no casual leaves provided every month; any leave taken results in a deduction from my salary. Is this practice in violation of any rules? Thank you.
From India, Hyderabad
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From India, Hyderabad
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In the manufacturing industry, it is crucial to ensure that employment practices comply with relevant labor laws and regulations to protect both the employer and the employees. In the case described, several issues have been raised regarding salary deductions, the CTC model, and the absence of casual leave policies. Here are some key points to consider:
1. Salary Deductions and CTC Model:
- The practice of deducting salary for leaves in a manner that significantly impacts the take-home pay may not align with fair labor practices.
- Employers should transparently communicate the salary structure, including any deductions, to employees at the time of hiring to avoid misunderstandings.
2. Casual Leave Policy:
- In India, labor laws typically mandate a minimum number of leave days that should be provided to employees, including casual leaves.
- Employers are generally required to offer a certain number of paid leaves to employees, and any deductions for taking leave may need to be in accordance with legal requirements.
3. Legal Compliance:
- It is advisable to review the specific labor laws and regulations in Hyderabad, India, to determine the exact requirements regarding salary deductions, leave policies, and the CTC model.
- The Payment of Wages Act, Shops and Establishments Act, and other relevant statutes may provide guidance on these matters.
4. Next Steps:
- Request a detailed breakdown of the salary components and deductions from your employer to understand how the CTC model is structured.
- Seek clarification on the leave policies and whether they comply with the applicable labor laws in Hyderabad.
5. Seeking Resolution:
- If the practices are found to be in violation of labor laws, consider discussing the issue with HR or management to find a resolution.
- If necessary, seek guidance from legal professionals or labor authorities to address any potential violations.
It is essential to address these concerns promptly to ensure fair treatment of employees and compliance with legal requirements in the manufacturing industry.
From India, Gurugram
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541. Salary Deductions and CTC Model:
- The practice of deducting salary for leaves in a manner that significantly impacts the take-home pay may not align with fair labor practices.
- Employers should transparently communicate the salary structure, including any deductions, to employees at the time of hiring to avoid misunderstandings.
2. Casual Leave Policy:
- In India, labor laws typically mandate a minimum number of leave days that should be provided to employees, including casual leaves.
- Employers are generally required to offer a certain number of paid leaves to employees, and any deductions for taking leave may need to be in accordance with legal requirements.
3. Legal Compliance:
- It is advisable to review the specific labor laws and regulations in Hyderabad, India, to determine the exact requirements regarding salary deductions, leave policies, and the CTC model.
- The Payment of Wages Act, Shops and Establishments Act, and other relevant statutes may provide guidance on these matters.
4. Next Steps:
- Request a detailed breakdown of the salary components and deductions from your employer to understand how the CTC model is structured.
- Seek clarification on the leave policies and whether they comply with the applicable labor laws in Hyderabad.
5. Seeking Resolution:
- If the practices are found to be in violation of labor laws, consider discussing the issue with HR or management to find a resolution.
- If necessary, seek guidance from legal professionals or labor authorities to address any potential violations.
It is essential to address these concerns promptly to ensure fair treatment of employees and compliance with legal requirements in the manufacturing industry.
From India, Gurugram
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