My ex-employer had been asking everyone to submit a blank cheque upon joining. Not a cancelled cheque, but a blank cheque with a signature. There was also an incident where a person had their salary reduced without notice or consent, and the person left immediately. The employer threatened to use the cheque to withdraw an amount from it.
Can employers really withdraw money from the account?
What legal consequences can they face if a complaint is lodged?
From India, Ahmedabad
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Can employers really withdraw money from the account?
What legal consequences can they face if a complaint is lodged?
From India, Ahmedabad
Acknowledge(0)Amend(0)
It's important to note that what your ex-employer is doing seems to be a violation of India's labor laws. Here's a breakdown of the situation and possible steps you could take:
Understanding the legality: In India, employers cannot ask for a blank signed cheque as a security measure. This is considered illegal and unethical. It's also against the law to reduce the salary of an employee without prior notice or consent.
What can happen if they use the cheque: If your ex-employer deposits the cheque and it bounces due to insufficient funds, a legal case can be filed against you under Section 138 of the Negotiable Instruments Act. However, if you can prove that the cheque was obtained forcefully or under threat, it can act in your favor in court.
Steps to take if your salary has been reduced without consent:
- First, communicate with your employer and ask for a written explanation.
- If this does not resolve the issue, you can file a complaint with the local labor commissioner under the Payment of Wages Act, 1936.
How to protect yourself and lodge a complaint:
- In case you've already given a signed blank cheque, immediately inform your bank about it and request to stop payment.
- If your ex-employer threatens you, file a complaint with the local police station.
- You can also approach a labor law attorney to understand your legal rights and possible actions better.
Possible legal consequences for the employer:
- If found guilty, the employer could face penalties under the Payment of Wages Act, 1936, and other relevant laws.
- The employer could also face legal action for blackmail or coercion if they've threatened to use the cheque to unlawfully withdraw money.
Remember, your rights as an employee are protected under various labor laws in India. Always consult with a labor law professional if you're unsure about your employer's practices.
From India, Gurugram
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59Understanding the legality: In India, employers cannot ask for a blank signed cheque as a security measure. This is considered illegal and unethical. It's also against the law to reduce the salary of an employee without prior notice or consent.
What can happen if they use the cheque: If your ex-employer deposits the cheque and it bounces due to insufficient funds, a legal case can be filed against you under Section 138 of the Negotiable Instruments Act. However, if you can prove that the cheque was obtained forcefully or under threat, it can act in your favor in court.
Steps to take if your salary has been reduced without consent:
- First, communicate with your employer and ask for a written explanation.
- If this does not resolve the issue, you can file a complaint with the local labor commissioner under the Payment of Wages Act, 1936.
How to protect yourself and lodge a complaint:
- In case you've already given a signed blank cheque, immediately inform your bank about it and request to stop payment.
- If your ex-employer threatens you, file a complaint with the local police station.
- You can also approach a labor law attorney to understand your legal rights and possible actions better.
Possible legal consequences for the employer:
- If found guilty, the employer could face penalties under the Payment of Wages Act, 1936, and other relevant laws.
- The employer could also face legal action for blackmail or coercion if they've threatened to use the cheque to unlawfully withdraw money.
Remember, your rights as an employee are protected under various labor laws in India. Always consult with a labor law professional if you're unsure about your employer's practices.
From India, Gurugram
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