(1) No deduction except as provided herein after shall be made by an employer from the wages of an employee-
(a) fines;
(b) deductions from absence from duty;
(c) deductions for damage to or loss of goods expressly entrusted to the employee 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;
(d) deductions for house accommodation supplied by the employer;
(e) deductions for such amenities and services as Government may by general or special order, authorise;
Explanation.- The word “service” in the sub-rule does not include supply of tools, any raw materials required for the purposes of employment.
(f) deductions for recovery of advance or for over payments of wages;
(g) deductions of income-tax payable by the employee;
(h) deductions required to be made by order of a Court or other authority competent to make such order;
(i) deductions for subscription to and for repayment of advances from any provident fund to which the Provident Funds Act, 1925 (XIX of 1925), applies or any recognised fund as defined in section 58-A of the Indian Income-tax Act, 1922 (XI of 1922)1, or any Provident Fund approved in this behalf by the State Government during the continuance of such approval;
(j) deductions for payment to co-operative societies approved by Government or to a scheme of Insurance approved by Government;
(k) deductions for revenue stamp required to be attached to pay receipts, where applicable;
(l) deductions for any savings scheme approved by Government with the written authority of the employee;
(m) deductions on account of supply of cooked food or refreshments during the hours of employment in accordance with any scheme previously approved by the Chief Inspecting Officer.
(n) Deductions for contribution to the National Defence Fund or to any Defence Saving Scheme approved by the State Government with the written authority of the employee.
Explanation.- Every payment made by the employee to the employer or his agent shall for the purpose of these rules be deemed to be a deduction from wages.
(2) An employer desiring to impose a fine on any employee or to make a deduction for damage or loss caused to him shall explain to him personally and also in writing the act or omission or the damage or loss in respect of which the fine or deduction is proposed to be imposed or made and give him an opportunity to offer an explanation in the presence of another person. The amount of the said fine or deduction shall also be intimated to him in writing.
1. Now see Income Tax Act, 1961.
JHARKHAND SHOPS AND ESTABLISHMENTS RULES, 2001 9
(3) The total amount of fine which may be imposed in any one wage period on any employee shall not exceed an amount equal to 1[half-an-anna in the rupee of the wages payable to him in respect of that wage period.
(4) No fine shall be imposed on a child.
(5) All fines realized shall be expended only on such purposes beneficial to the persons employed in the establishment as are approved by the Chief Inspecting Officer.
(6) A deduction under clause (c) of sub-rule (1) shall not exceed the amount of damage or loss caused to the employer by the neglect or default of the employee.
(7) (a) Deductions may be made under cause (b) of sub-rule (1) only on account of the absence of an employee from the place or places where 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.
(b) The amount of such deduction shall in no case bear to the wages payable to the employee in respect of the wage period for which the deduction is made a larger proportion than the period for which he was absent to the total period within such wage period, during which by the terms of his employment he was required to work.
(8) A deduction under cause (d) or clause (e) of sub-rule (1) shall not be made from the wages of an employee unless the house accommodation, amenity or service has been accepted by him as a term of employment or otherwise and such deduction shall not exceed an amount equivalent to the value of the house accommodation, amenity or service supplied and in the case of a deduction under clause (e) shall be subject to such conditions as Government may, by notification in the Official Gazette impose.
(9) Deductions under clause (j) of sub-rule (1) shall be subject to such conditions as Government may, by other, impose.