Section 12 in The U.P. Dookan Aur Vanijya Adhishthan Niyamavali, 1963
12. Deduction from wages [Section 15].
(1)No deduction shall be made by an employer from the wages of an employee except on account of-(a)fines ;(b)absence from duty ;(c)damage to or loss of goods expressly entrusted to the employee for custody, or of loss of money for which he is required to account, where such damage or loss is directly attributed to his neglect or default;(d)house accommodation supplied by the employer where the rent was being charged by the employer from the employee on the date the Act came into force;(e)such amenities and services as the State Government may, by general or special order specify.Explanation. - The word "services" in this sub-rule does not include the supply of tools and raw materials required for the purposes of employment;(f)recovery of advance or of over-payment of wages ;(g)income-tax payable by the employee ;(h)amounts required to be recovered by order of a court or other authority competent to make such order ;(i)subscription to, or repayment of advance from, any provident fund to which the Provident Funds Act, 1925 (XIX of 1925), applies or any other provident fund recognised under Rule 3 of Part A of the Fourth Schedule to the Income Tax Act, 1961 (43 of 1961), or approved in this behalf by the State Government during the continuance of such recognition or approval;(j)payments to cooperative societies approved by the State Government;(k)revenue stamps required to be attached to pay receipts ;(l)supply of cooked food or refreshment during the hours of employment in accordance with any scheme previously approved by the Chief Inspector ;(m)payment of any insurance premium on the employee's Life Insurance Policy or of contribution to the National Defence Fund or any Defence Saving Scheme approved by the State Government, provided that prior written authorization in this behalf is obtained from the employee ;(n)payment of security deposit agreed to in writing by an employee and in accordance with any scheme approved previously in writing by the Chief Inspector;(o)employee's contribution to a superannuation fund approved under Part B of the Fourth Schedule to the Income Tax Act, 1961, or of any similar scheme agreed to in writing by the employer and previously approved in writing by the Chief Inspector.Explanation. - (i) Every payment made by an employee to the employer or his agent shall, for the purposes of these rules, be deemed to be a deduction from wages.(ii)Every deduction made by an employer or his agent from any deposit taken from an employee as security for the purposes of employment shall be deemed to be a deduction from wages.(2)No fine shall be imposed on an employee-(a)except for an act or omission specified by the employer with the approval of the Chief Inspector or the Deputy Chief Inspector ; or(b)without giving the employee concerned a reasonable opportunity of showing cause against the proposed fine :Provided that the employer may if he is satisfied that for some reasons to be recorded by him in writing it is not reasonably practicable to give the employee an opportunity to show cause, dispense with such opportunity.(3)(a)Deductions may be made under clause (b) of sub-rule (1) only on account of the absence of an employee from the place or places where, by 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 deductions for absence from duty 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 has absent bears to the total period, within such wage period, during which by the terms of his employment, he was required to work:Provided that, subject to any orders made in this behalf by the State Government, if ten or more employees or where the total number of employees is 20 or less one-half of the total number acting in concert absent themselves without the due notice (that is to say without giving the notice which is required under the terms of their contract of employment), and without reasonable cause, such deduction from any employee may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of the notice.Explanation. - For the purpose of this sub-rule, an employee shall be deemed to be absent from the place where he is required to work if, although, present in such place he refuses, in pursuance of a stay-in-strike or for any other cause, which is not reasonable in the circumstances, to carry out his work.(4)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 and shall not be made until the employee has been given an opportunity of showing cause against such deduction.(5)A deduction under clause (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 the 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 the State Government may impose in the order specifying the amenities or services.(6)Deductions under clause (f) of sub-rule (1) shall be subject to the following conditions-(i)recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage period, but no recovery shall be made of such advances for travelling expenses;(ii)recovery of advances of wages not already earned shall be subject to any order made by the State Government regulating the extent to which such advances may be given and the instalments by which they may be recovered;(iii)no instalment for recovery of advance shall exceed one-third, or where the wages for any wage period do not exceed Rs. 20, one-fourth of the wages for the period in respect of which the deduction is made ; and(iv)the amount and date of every advance and its repayment with the date thereof shall be entered in Form "G" prescribed under Rule 18.(7)Deductions under clause (j) of sub-rule (1) shall be subject to such conditions as the State Government may, by order, impose.(8)All such deductions and realizations shall be recorded in a register in Form "D".
