Unauthorized deductions from wages, also known as unlawful deductions, refer to any deduction from an employee's wages that is not permitted by law or has not been agreed upon by the employee. These types of deductions can be a significant source of stress and financial hardship for workers, as they can result in reduced pay and difficulty making ends meet.
The Payment of Wages Act 1936 is a key piece of legislation in India that aims to protect workers from unauthorized deductions and ensure that they receive their full and fair wages. The Act applies to all employees who are paid by the hour, day, week, or month, and it sets out the rules and procedures that employers must follow when making deductions from wages.
Under the Act, employers are only allowed to make deductions from wages in certain circumstances. For example, deductions may be permitted for taxes, insurance premiums, or other legally required deductions. In addition, deductions may be allowed for advances or loans that the employee has agreed to repay, as well as for damages to property or equipment.
However, employers are not allowed to make any other deductions from wages unless they have the written consent of the employee. This means that employers cannot deduct wages for things like damaged or lost equipment, mistakes or errors, or as a disciplinary measure.
If an employee believes that their employer has made an unauthorized deduction from their wages, they have the right to file a complaint with the appropriate authorities. The employer may be required to pay back the deducted amount, as well as any fines or penalties that may be assessed.
It is important for both employers and employees to be aware of their rights and responsibilities under the Payment of Wages Act 1936. Employers should ensure that they are only making authorized deductions from wages, while employees should be aware of their rights and know how to file a complaint if they believe their wages have been unlawfully deducted. By following the rules set out in the Act, both parties can help to ensure that workers are treated fairly and receive the full and fair wages they are entitled to.
Payments of Wages Act Section 7: Deductions from Wages
The State Government may by notification extend the provisions to any class of persons employed in any establishment or class of establishment.  Display by notice of abstract of the Act The individual liable for the payment of wages to people employed in a plant will cause to be shown in such processing plant a notification containing such abstracts of this Act and of the standards made thereunder in English and in the language of most of the people employed in the industrial facility, as might be recommended. For any recovery of Advance or Interest Thereon or adjustment of Over-payment of Wages. Wages shall be paid before the expiry of the 7th day of the wage period where less than one thousand persons are employed in any industrial or other establishment or railways or factory and before the expiry of the 10th day of the wage period where more than one thousand persons are employed. For deducting for recovery of advances What are the rules for imposing fines on the employee?  Delegation of powers The suitable Government may, by warning in the Official Gazette, direct that any power exercisable by it tinder this Act will, in connection to such issues and subject to such conditions, assuming any, as might be indicated toward the path, be additionally exercisable — a where the suitable Government is the Central Government, by such official or authority subordinate to the Central Government or by the State Government or by such official or authority subordinate to the State Government, as might be indicated in the notice; b where the suitable Government is a State Government, by such official or authority subordinate to the State Government as might be determined in the notification. .
Payment of Wages Act, 1936
Deduction ought not to surpass a sum equal to the estimation of the house-settlement pleasantry or administration provided. What are the rules that an employer should follow before deducting wages for absence from duty? Any loss of wages resulting from the imposition, for good and sufficient cause, upon a person employed of any of thefollowing penalties, namely:- i the withholding of increment or promotion including the stoppage of increment at an efficiency bar ; ii the reduction to a lower post or time scale or to a lower stage in a time scale; or iii suspension; shall not be deemed to be a deduction from wages in any case where the rules framed by the employer for theimposition of any such penalty are in conformity with the requirements, if any, which may be specified in thisbehalf by the State Government by notification in the Official Gazette. A deduction can be made only in the following manner. . Cheques and crediting the amount in the bank can also be methods of payment if the employee authorizes. They are not to be taken into account for deciding the applicability of the Act in the context of section 1 6 of the Act. Additionally, the employer can pay the wages by means of a cheque or a direct deposit to the bank of the representative subsequent after taking a composed approval from him.
'Authorized Deductions' under the Payment of Wages Act, 1936
 5 All guidelines made under this section will be dependent upon the state of previous publication, and the date to be determined under clause 3 of section 23 of the General Clauses Act, 1897, will not be under a quarter of a year from the date on which the draft of the proposed principles was distributed. The amount of tax payable by a particular person is governed by the provisions of the Income Tax and the deductions would be to the extent of the tax payable under the provisions. In the month of January 2018, his wages get delayed. Such all workers can make one application to the expert for payment of wages as indicated by this act. The mechanical units were revolt making, payment of wages to their workers at ordinary interims and wages were not uniform. Illustration- X, an employee gets paid Rs.
