Salary deducted as leave AND incomplete notice period Salary deducted as leave AND incomplete notice period

11 months ago

I resigned from my employment and served 26 out of 30 days notice period. Out of the 4 days, 3 were applied as leave. In the F&F settlement, the company has charged the days in the leave AND as compensation. Is this legal

Kishan Dutt Kalaskar

Responded 11 months ago

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A.Dear Sir,

Please approach the following authority or similar authority in a state


The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,
Bannerghatta Road, Bangalore-29.
Addresses of Labor Inspectors in Bengaluru in different locations
https://karmikaspandana.karnataka.gov.in/page/Contact+Us/Labour+Inspector/en
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Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)

(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.

(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.

(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.

(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.

(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.

(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]

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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 11 months ago

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A.Please go through the terms and conditions of your appointment/offer letter, the answer to your query lies there. In case there is no provision in your offer letter for deduction alike , the action may be termed as Unfair Labour Practice.

Reach out to the concerned Chief Inspector, Shops and Establishments in case your establishment is registered under the Shops and Establishment Act and in case your establishment is a commercial establishment under I D Act then reach out to concerned Labour Commissioner Office for desired reliefs
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 11 months ago

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A.Hello,
yes it is legal if a comapny charges for the leaves you take in the fnf settlement.
thank you
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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 11 months ago

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A.See in case of tender of resignation service of 30 days advance notice is mandatory and if your service fall short of said 30 days notice, your full and final settlement payment/compensation is computed for the days you served and treating the days of your absence either as permitted leave or as No work No pay basis.
In case you F & F settlement is computed following the aforesaid clarification then prima facie there is no illegality or unfairness appearing on the face of the record.
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Anonymous

Replied 11 months ago

They have deducted the amount of the 4 days twice - as leave and as no work no pay.
Is that allowed?

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Legal Counsel Vidhikarya

Replied 11 months ago

If the deduction is made twice for same cause then the action of the employer is illegal being arbitrary and deserves to be challenged before the concerned authority as explained in earlier response to your query.

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Vidhi Samaadhaan Vidhi Samaadhaan

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