Wages - Bonus and incentives

Dear Sir,

The deduction of ₹50,000 from your salary for a client’s luggage issue is highly questionable. Under the Payment of Wages Act, 1936, deductions from wages are permitted only in specific circumstances (such as absence, damage or loss directly attributable to the employee, etc.), and even then:

The employee must be given an opportunity to explain
The deduction must be proportionate and justified
It cannot be arbitrary or punitive

A blanket deduction for a client issue—especially without inquiry—would likely be considered illegal deduction of wages.

Dear Client,

Your case involves non-payment of salary, incentives, and unlawful deductions, for which legal remedies are available.

Firstly, once work has been performed, the employer is legally bound to pay the agreed salary, bonus, or incentives. Even if the agreement regarding incentives was communicated through WhatsApp or email, it can still be relied upon as evidence. Non-payment of such dues may amount to a violation of the Payment of Wages Act, 1936 and applicable provisions under the Shops and Establishments Act.

Secondly, the deduction of Rs. 50,000 from your salary on the ground of a client issue is not legally justified unless it was specifically authorised by law or your employment contract, and you were given an opportunity to explain your position. Arbitrary deductions without due process are generally unlawful.

Further, if there was a clear understanding that incentives would be paid for each corporate onboarding, the employer cannot deny such payment after the work has already been completed. You remain entitled to receive the agreed incentive amount.

In these circumstances, you may take the following steps:

1. Issue a formal legal notice to the employer demanding payment of pending salary, incentives, and refund of unlawful deductions.
2. Preserve all relevant evidence, including WhatsApp conversations, emails, and records of corporate onboarding.
3. File a complaint before the Labour Commissioner or appropriate authority for recovery of dues.
4. Initiate proceedings before the competent labour court or civil court, if necessary.

The employer cannot withhold earned wages or incentives or make arbitrary deductions. You are legally entitled to recover your dues along with appropriate remedies under labour laws.