Can it be allowed under Payment of Wages Act- deduction from wages/salary from employee ,for food taken in the canteen in any establishment mines/factory?
1
The employer is not bounded to provide free food in any Act.
Canteen run by the establishment on the subsidy or no profit no loss basis,
u can either pay directly on a counter or through Food coupons or monthly deductions from wages.
From India, Lucknow
Canteen run by the establishment on the subsidy or no profit no loss basis,
u can either pay directly on a counter or through Food coupons or monthly deductions from wages.
From India, Lucknow
Dear Debiprasad,
Please refer to the heading under ' DEDUCTIONS ' in the Payment of Wages Act, 1936 which applies to establishments covered by the Factories Act, 1948 and the Mines Act, 1952
Section 7(2)(e) of the PWA,1936 authorizes the deduction towards supply of statutory amenities provided by the employer. Beyond certain threshold strength of employees, canteen facility is mandatory under these Acts. Even otherwise, the shift working pattern as well as the continuous nature of work of these employees justify the provision for supply of food and refreshments through canteen or some other arrangement by the employer. But the employer is not bound to provide them free of cost. Therefore, those employees availing these facilities need to pay back. Hence the deduction in this regard from their wages is an authorized one under the above section.
The cost factor in this regard is to be determined on the basis of the number of employees, the type of food, the financial position of the establishment with regard to indirect commitments and the like. It can be on subsidized rate basis in which the employer may bear a portion of the costs as a welfare measure or no profit-no loss basis.
From India, Salem
Please refer to the heading under ' DEDUCTIONS ' in the Payment of Wages Act, 1936 which applies to establishments covered by the Factories Act, 1948 and the Mines Act, 1952
Section 7(2)(e) of the PWA,1936 authorizes the deduction towards supply of statutory amenities provided by the employer. Beyond certain threshold strength of employees, canteen facility is mandatory under these Acts. Even otherwise, the shift working pattern as well as the continuous nature of work of these employees justify the provision for supply of food and refreshments through canteen or some other arrangement by the employer. But the employer is not bound to provide them free of cost. Therefore, those employees availing these facilities need to pay back. Hence the deduction in this regard from their wages is an authorized one under the above section.
The cost factor in this regard is to be determined on the basis of the number of employees, the type of food, the financial position of the establishment with regard to indirect commitments and the like. It can be on subsidized rate basis in which the employer may bear a portion of the costs as a welfare measure or no profit-no loss basis.
From India, Salem
Dear Debiprasad,
In many companies, the canteen services of tea, snacks, meal are available against coupons which are issued by either management or canteen contractor. Workers have these coupon books whenever they need. For that they need to submit a written requisition. The cost of coupons is then deducted from their salary/wages. It is cost of coupon book and not what is consumed in canteen. The coupons remain in balance at the end of month which workers use in next month. If a worker is separating from the company, then the balance coupons are returned by the worker and the cost is refunded to him. At times workers take coupons and sell them to other workers at a discount. This way the seller worker gets immediate cash and the buyer worker gets coupons cheaper.
Vibhakar Ramtirthkar.
From India, Pune
In many companies, the canteen services of tea, snacks, meal are available against coupons which are issued by either management or canteen contractor. Workers have these coupon books whenever they need. For that they need to submit a written requisition. The cost of coupons is then deducted from their salary/wages. It is cost of coupon book and not what is consumed in canteen. The coupons remain in balance at the end of month which workers use in next month. If a worker is separating from the company, then the balance coupons are returned by the worker and the cost is refunded to him. At times workers take coupons and sell them to other workers at a discount. This way the seller worker gets immediate cash and the buyer worker gets coupons cheaper.
Vibhakar Ramtirthkar.
From India, Pune
Umakanthan Sir has explained in a very well manner, so i think no need to repeat the same again. Great Sir! Regards, Prashant
From India, Pune
From India, Pune
Thanks Umakanthan.M Sir for your valuable inputs,
Do these deductions require special order or permission from authorized officers of State/Central Govt. under section 7(2) e, of the Payment of Wages Act-1936.
Do these deductions require special order or permission from authorized officers of State/Central Govt. under section 7(2) e, of the Payment of Wages Act-1936.
Not at all necessary. Employer is the final authority for such deductions. But if you are working in a factory, you can maintain Register of Deductions, in the prescribed format .
From India, Aizawl
From India, Aizawl
Mr. Mishra,
There is no need for taking approval for the deduction.
However, (assuming it is a factory), there must be a canteen committee who approves the prices
The canteen must not be making a profit (the canteen contractor will make a profit of course, but the factory must not make a profit from canteen operations) unless run by a coop of the workers, in which case, they can make 5% profit.
I disagree with Mr. Nair, this does not go into register of deductions which is for losses and damages, not for canteen deduction.
However, ensure that the total deduction from salary (including all deductions) do not exceed 50% of gross wages.
The canteen must keep details of deduction and costs and must make a canteen books of accounts at the end of each year (but preferably at the end of each month)
From India, Mumbai
There is no need for taking approval for the deduction.
However, (assuming it is a factory), there must be a canteen committee who approves the prices
The canteen must not be making a profit (the canteen contractor will make a profit of course, but the factory must not make a profit from canteen operations) unless run by a coop of the workers, in which case, they can make 5% profit.
I disagree with Mr. Nair, this does not go into register of deductions which is for losses and damages, not for canteen deduction.
However, ensure that the total deduction from salary (including all deductions) do not exceed 50% of gross wages.
The canteen must keep details of deduction and costs and must make a canteen books of accounts at the end of each year (but preferably at the end of each month)
From India, Mumbai
Mr. Banerjee
As far as I understand, 2 registers, Register of Deductions and Register of Fines are maintained in establishments. For losses /damages, the details of fines/penalties levied are entered in Register of Fines
From India, Aizawl
As far as I understand, 2 registers, Register of Deductions and Register of Fines are maintained in establishments. For losses /damages, the details of fines/penalties levied are entered in Register of Fines
From India, Aizawl
Register of Deduction is register of deduction for damages and losses.
It is not for recovery of canteen charges, which is neither a recovery for loss nor recover for damages done by the employee.
Sec. 10 refers to the register of deduction, as below :
10. Deductions for damage or loss-[(1) A deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person.
(1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of sub-section (2) of section 7 until the employed person has been given an opportunity of showing cause, against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.]
(2) All such deductions and all realisations thereof shall be' recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed.
Therefore, the register is for recovery of loses caused by the employee.
From India, Mumbai
It is not for recovery of canteen charges, which is neither a recovery for loss nor recover for damages done by the employee.
Sec. 10 refers to the register of deduction, as below :
10. Deductions for damage or loss-[(1) A deduction under clause (c) or clause (o) of sub-section (2) of section 7 shall not exceed the amount of the damage or loss caused to the employer by the neglect or default of the employed person.
(1A) A deduction shall not be made under clause (c) or clause (m) or clause (n) or clause (o) of sub-section (2) of section 7 until the employed person has been given an opportunity of showing cause, against the deduction, or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.]
(2) All such deductions and all realisations thereof shall be' recorded in a register to be kept by the person responsible for the payment of wages under section 3 in such form as may be prescribed.
Therefore, the register is for recovery of loses caused by the employee.
From India, Mumbai
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Clarification On PF Deduction For Indian Employees (International Workers) Returning From Foreig.pdf
PMRPY-DEDUCTION -SOLUTION.xls
Job Work-outwork employees.docx