Page 155 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes equivalent to their value. Furthermore, the deductions in respect of amenities and services can
be made subject only to the following conditions:

 The approval of the Chief Inspector of Factories shall be obtained in writing to compulsory
or general deductions from waves for any amenities or services provided by the employer.
 The kind and standard of services and amenities provided shall be subject to the approval
of the Chief Inspector of Factories.
 The maximum deduction shall not exceed half the wages at my period. Penalty for the
contravention of any provisions of this Section is up to 500.

The house accommodation, for which deductions are now allowed, may be supplied by the
employer or by Government or by any housing board set up under law, e.g., under the Subsidised
Industrial Housing Scheme (whether the Government or the board is the employer or not) or
any other authority engaged in the business of subsidising house-accommodation.

8.6.4 Deductions for Recovery of Advances (Sec. 12)

Deductions for recovery of advances or for adjustment of over-payments of wages can be made
only on the following conditions:
1. An advance of money made before employment must be recovered from the first payment of
wages, but advances given for traveling expenses can in no case be recovered.

2. Advances of wages not already earned are subject to rules made by State Governments, which
are as follows:

 an advance of wages not already earned shall not, without the previous permission of an
Inspector, exceed an amount equivalent to the wages earned by the employed person
during the preceding two (Bombay four) calendar months, or if he has not been employed
for that period, mice the wages he is likely to earn during the two (Mumbai four) subsequent
calendar months;

 the advance may be recovered in installments by deductions from wages spread over not
more than twelve (Bombay eighteen) months. No installment shall exceed one-third, or
where the wage of any wage-period are not more than twenty rupees, one fourth of the
wages for the wage-period in respect of which the deduction is made;

 the amounts of all advances sanctioned and the payment thereof shall be entered in a
prescribed register;

 (Bombay only) the rate of interest charged for advances granted shall not exceed 6 per cent
per annum. Penalty for contravention is fine up to 500.

8.6.5 Deductions for Absence from Duty

Deductions may be made under clause (b) of subsection (2) of section 7 only on account of the
absence of an employed person from the place or places where, by the terms of his employment,
he is required to work, such absence being for the whole or any part of the period during which
he is so required to work. The amount of such deduction shall in no case bear to the wages
payable to the employed person in respect of the wage period for which the deduction is made
a larger proportion than the period for which he was absent bears to the total period, within
such wage period, during which by the terms of his employment, he was required to work:
Provided that, subject to any rules made in this behalf by the Provincial Government, if ten or
more employed persons acting in concert absent themselves without due notice (that is to say
without giving the notice which is required under the terms of their contracts of employment)

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