(1) No deduction for breach of contract shall be made from the wages of an employed person who is under the age of fifteen years.
(2) No deduction for breach of contract shall be made from the wages of any employed person unless:-
(a) there is provision in writing forming part of the terms of the contract of employment requiring the employee to give notice of the termination of such employment and the period of notice does not exceed either,
(i) fifteen days or the wage-period, whichever is less ; or
(ii) the period of notice which the paymaster is required to give of the termination of that employment ;
(b) this rule has been displayed in English and in the language of the majority of the employed persons at or near the main entrance of the factory, and has been so displayed for not less than one month before the commencement of the absence in respect of which the deduction is made; and
(c) a notice has been displayed at or near the main entrance of the factory giving the name of the persons from whose wages the deduction is proposed to be made, the number of days’ wages to be deducted and the conditions (if any), on which the deduction will be remitted:
Provided that where the deduction is proposed to be made from all the persons employed in any departments or sections of the factory, it shall be sufficient, in lieu of giving the names of the persons in such departments or sections, to specify the departments or sections affected.
(3) No deduction for breach of contract shall exceed the wages of the person employed for the period by which the notice of termination of service given falls short of the period of such notice required by the contract of employment.
(4) If any conditions have been specified in the notice displayed under clause (c) of sub-rule (2), no deduction for breach of contract shall be made from the wages of any person who has compiled with those conditions.
16-A. If the deduction which may be made under sub-section (2) of section 7 of the Act in any wage-period from the wages of any employed person, cannot be accommodated within the ceiling fixed under sub-section (3) of section 7, the ceiling shall be rounded off to the nearest higher Rs.5 and then recovered. The balance, if any, could be recovered during subsequent wage periods provided the total deductions satisfy this rule. In the case of recurring excesses due from a worker, the remedy would lie in the managements reducing the quantum of such advances.
6 Section 26 (3) (i)