Page 297 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes c) Recovery of advances of wages not already earned shall be subject to any rules made
by the State Government in this regard. The State Government may regulate the
extent to which such advances may be given, the installments by which they may be
recovered and the rate of interest that may be charged on such advance.
6. Deductions for Recovery of Loans (Sec. 12-A)

a) Deduction for recovery of loans made from any fund constituted for the welfare of
labour and the interest due in respect thereof can be made, provided the fund is
constituted in accordance with the rules approved by the State Government.
b) Deductions can be made for recovery of loans granted for house building or other
purposes approved by the State Government and the interest due in respect thereof.

7. Deductions for Payments to Co-operative Societies and Insurance Schemes (Sec. 13). These
deductions shall include:
a) deductions for payments to co-operative societies approved by the State Government
or to a scheme of insurance maintained by the Indian Post Office;
b) deduction made with the written authorisation of the person employed for the
payment of any premium on his life insurance, policy to the Life Insurance
Corporation of India or for the purchase of securities of the Government of India or
of any State Government, or for being deposited in any Post office Savings Bank in
furtherance of any savings scheme of any such Government.
Theses deductions shall be subject to such conditions as the State Government may impose.

8. Other Deductions. The following deductions are also permissible under the Act:
a) deductions of income-tax payable by the employed person;
b) deductions required to be made by order of a court;
c) deductions for subscriptions to, and for repayments of advances from any provident
fund to which the Provident Funds Act, 1925 applies or any recognised provident
fund or any provident fund approved in this behalf by the State Government;

d) deductions for payment of insurance premia of Fidelity Guarantee Bonds;
e) deductions made, with the written authorisation of the employed person, for the
payment of his contribution to any fund constituted by the employer or trade union
registered under the Trade Unions Act, 1926 for the welfare of the employed persons
or the members of their families or both and approved by the state government or
any officer specified by it on the behalf, during a continuing of such approval;
f) deductions made, with the written authorisation of the employed persons, for
payment of the fees payable by him for the membership of any trade union registered
under the Trade Unions Act, 1926;
g) deductions for recovery of losses sustained by a railway administration on account
of acceptance by the employed person of counterfeit or base coins or mutilated or
forged currency notes;

h) deductions for recovery of losses sustained by a railway administration on account
of the failure of the employed person to invoice to bill, to collect or to account for
the appropriate changes due to that administration whether in respect of freight
fares, demurrage, warfare and carriage or in respect of sale of food in catering
establishments or in respect of sale of commodities in grain shops or otherwise;

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