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Mercantile Laws – II

Notes daily-rated workers in the control, public works Department or the state from the operation of
this section. However, no such order shall be made without consultation of the central
Government. in case of daily-rated workers.

Self Assessment

State whether the following statements are true or false:
9. The fine shall be imposed on any employed person only for acts and omissions which has
received approval of the State Government.

10. No fine shall be imposed on any employed person who is under the age of eighteen years.

8.6 Deduction from Wages

The following shall be deemed to be deduction from wages:
1. Every payment made by the employed person to the employer or his agent.

2. Any loss of wages resulting from the imposition, for good and sufficient cause, upon a
person employed, of any of the following penalties:
(a) The withholding of increment or promotion (including the shortage of increment at
an efficiency bar);
(b) The reduction to a lower post or time scale or to a lower stage in a time scale; or
(c) Suspension;

8.6.1 Deduction which may be made from Wages

Deduction authorized under the Act is enumerated in section 7(2). Any other deduction is
unauthorized. Further, the authorized deduction can be made only in accordance with the
provisions of the Act.

(i) Fines
(ii) Deduction for absence from duty;
(iii) Deduction for damage to or loss of goods expressly entrusted to the employed person for
custody, or for loss of money for which he is required to account where such damage or loss is
directly attributable to his neglect or default;
(iv) Deduction for house accommodation supplied by the employer of by Govt. of any housing
board set up under any law for the time being in force (whether the Govt. or the board is the
employer or not) or any other authority engaged in the business of subsidizing
house-accommodation which may be specified in this behalf by the State Govt. by notification
in the Official Gazette.

(v) Deduction for such amenities and services supplied by the employer as the State Government
or any officer specified by it in this behalf may, by general or special order, authorize.

8.6.2 Fines

The following rules apply to deductions by way of fines:

1. The fine shall be imposed on any employed person only for acts and omissions which has
received approval of the State Government or of the prescribed authority, and has been specified
by notice under Sub-section (2).

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