Dear Members
I need a clarification about a case.
I am working in automobile industry , and here 145 employees are working. In our company one employee got an accident and he has been in treatment for two months and he is not able to work for coming 6 months. So some employees in our company met me and gave me a written request with more than 100 employees signature. The content of the request is that they would like to donate an amount to the employee who is in treatment by an accident. So they are asking that HR Department should deduct 500 Rs each from their salary and give it to that employee. Is this possible by the rule or not. Please Give me the technical explanation!!!!!!!!!!!!!!!!!!!!!
THANKS & REGARDS
AKHIL S
From India, Kottayam
I need a clarification about a case.
I am working in automobile industry , and here 145 employees are working. In our company one employee got an accident and he has been in treatment for two months and he is not able to work for coming 6 months. So some employees in our company met me and gave me a written request with more than 100 employees signature. The content of the request is that they would like to donate an amount to the employee who is in treatment by an accident. So they are asking that HR Department should deduct 500 Rs each from their salary and give it to that employee. Is this possible by the rule or not. Please Give me the technical explanation!!!!!!!!!!!!!!!!!!!!!
THANKS & REGARDS
AKHIL S
From India, Kottayam
Legally such cuttings are not permitted.
I would not encourage such deductions.
The kind gesture being planned by employees s voluntary,let them keep it out of company records.
Authorised deductions are given in Payment of wages Act as an example.
Company should keep out of this fund collection.
From India, Pune
3131I would not encourage such deductions.
The kind gesture being planned by employees s voluntary,let them keep it out of company records.
Authorised deductions are given in Payment of wages Act as an example.
Company should keep out of this fund collection.
From India, Pune
This is good gesture from employees side...... Let them co-ordinate among themselves. Don’t involve in written.
From India, Madras
From India, Madras
I don't think that there is anything wrong in it. If the requirement is now and the employees find it difficult to mobilise the fund by meeting each and every person, the company can pay the sum now and recover the same from the salaries of employees. Moreover, there is a written authorisation from the employees. This deduction will not be against Payment of Wages Act because the said Act permits contributions for the benefit and welfare of employed persons or their families (section 7 (kk)
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
"""This deduction will not be against Payment of Wages Act because the said Act permits contributions for the benefit and welfare of employed persons or their families (section 7 (kk)""
Sec7(kk) of the Payment of Wages Act,1936 reads as follows:
32 [(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under the Trade Unions Act, 1926 (16 of 1926), for the welfare of the employed persons or the members of their families, or both, and approved by 10[the appropriate Government] or any officer specified by it in this behalf, during the continuance of such approval;
This deduction voluntary, though it may be does not meet the criteria specified in the Section.
From India, Pune
Sec7(kk) of the Payment of Wages Act,1936 reads as follows:
32 [(kk) deductions made, with the written authorisation of the employed person, for the payment of his contribution to any fund constituted by the employer or a trade union registered under the Trade Unions Act, 1926 (16 of 1926), for the welfare of the employed persons or the members of their families, or both, and approved by 10[the appropriate Government] or any officer specified by it in this behalf, during the continuance of such approval;
This deduction voluntary, though it may be does not meet the criteria specified in the Section.
From India, Pune
This is just an interpretation of law. The objective is simple, any contribution towards welfare of persons employed or their family members. Now if the employer is paying the sum as advance recoverable from the salaries of various employees, will there be any illegality? I think clause (f) of section 7 permits that. Moreover, such kinds of contributions for marriage, house warming etc of employees are very common now a days and I don't think that any authority under the Payment of Wages Act has taken action against the employer for granting this facility, ie, advancing money in lumpsum and recovering the same from various persons. If the authorities are so strict in compliance then I will be in trouble because it is very common in my establishment that whenever there is any requirement, whether marriage or accident, hospitalisation, people use to contribute and it will be the company which pays the amount initially and then recover it from the salaries.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Dear Madhu, Your point is well taken. I only wrote about my interpretation of law,after reading the section concerned. Practise may be different from theory of law.
From India, Pune
From India, Pune
There is a law,there is a practise,now one has to decide which to follow.
Tomorrow an employee can say his signature was forged.
When a combined request reaches the management,who verifies the signatures??
Company a/cs are audited and may have to answer queries(though legitimate answer is there)
I am all for employees helping each other in case of emergency and keeping company also in the loop,but routing the funds through company is incorrect in my opinion.
From India, Pune
Tomorrow an employee can say his signature was forged.
When a combined request reaches the management,who verifies the signatures??
Company a/cs are audited and may have to answer queries(though legitimate answer is there)
I am all for employees helping each other in case of emergency and keeping company also in the loop,but routing the funds through company is incorrect in my opinion.
From India, Pune
Dear all, Greetings, How to start a manpower agency like security & house keeping services in tamilnadu. What is the mandatory registration in govt bodies. thank u
Hello Akhil,
Like Madhu TK mentioned, the arrangement of deducting from salaries & paying to the concerned employee should suffice.
However, Nathrao's points can't really be wished away.......especially since you say only 100 employees have given their OK in writing. What about the rest......what IF anyone from this lot raises objections later?
You didn't mention IF there is a Union......if you have one, then they can take the responsibility of speaking on behalf of ALL the employees.
If not, better would be to take the OK from each employee SEPARATELY than as a single Letter.....the written OK of each employee can go into each employee's Personal File.
Since this act basically inculcates cohesion among the employees, it's better to find ways to do it.
Rgds,
TS
From India, Hyderabad
Like Madhu TK mentioned, the arrangement of deducting from salaries & paying to the concerned employee should suffice.
However, Nathrao's points can't really be wished away.......especially since you say only 100 employees have given their OK in writing. What about the rest......what IF anyone from this lot raises objections later?
You didn't mention IF there is a Union......if you have one, then they can take the responsibility of speaking on behalf of ALL the employees.
If not, better would be to take the OK from each employee SEPARATELY than as a single Letter.....the written OK of each employee can go into each employee's Personal File.
Since this act basically inculcates cohesion among the employees, it's better to find ways to do it.
Rgds,
TS
From India, Hyderabad
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