Section 16 in The M.P. Payment of Wages Rules, 1962
16. Deductions for breach of contract.
(1)No deduction for breach of contract shall be made from the wages for an employed person who is under the age of fifteen years or is a woman.(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 him to give notice of termination of his employment; and(i)the period of this notice does not exceed eight days or the wage-period, whichever is less; and(ii)the period of this notice does not exceed the period of notice which the employer is required to give of the termination of that employment;(b)this rule has been displayed in English and in Hindi written in Devnagari script at or near he 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;(c)a notice has been displayed at or near the main entrance of the factory giving the names of the persons from whom the deduction is proposed to be made, the number of days wages to be deducted and the conditions (if any) on which the deduction shall be remitted :Provided that where the deduction is proposed to be made from all the persons employed in any department 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 any person who has complied with these conditions.
