One of my acquaintances is engaged in contract employment. The contract specifies a 3-month notice period. Additionally, there is a clause in the contract that mandates a 50% deduction from the salary each month for the first 6 months as a caution deposit if the contract is terminated prematurely. My query is, is it legally permissible to withhold such salary deductions? Effectively, the individual is working for only half the salary during the initial 6 months. Even if the individual adheres to the contractual obligation by giving a 3-month notice in the 7th month and serving the notice period, they would only receive 50% of their salary. There is a reliance on the hope that the deducted 50% will be reimbursed after the notice period. The crux of the matter lies in the legality of deducting the agreed-upon salary. What authority does the employer hold to make such deductions? I am of the opinion that such deductions are unjust and lack legal validity. Assuming the individual is entitled to a salary of 10,000, receiving only 5000 for the subsequent six months poses challenges in meeting financial obligations like school fees, loans, and everyday expenses. The contract appears to exploit the individual with the vague promise of a decent salary. Even the basic salary component is subject to deductions, which I believe is a violation. I request insight on the legal standpoint to advise this individual on seeking legal recourse in this matter.
From India, Chennai
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1From India, Chennai
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Dear member,
The case does not relate to you. You have written based on the information provided to you by a third party. Let the person in question directly come to this forum and raise a query.
Even then also, we, the members, prefer understanding the verbatim of the contract or the appointment letter. Suggestions or opinions can be given once we go through the extract of the relevant portion.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
The case does not relate to you. You have written based on the information provided to you by a third party. Let the person in question directly come to this forum and raise a query.
Even then also, we, the members, prefer understanding the verbatim of the contract or the appointment letter. Suggestions or opinions can be given once we go through the extract of the relevant portion.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
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