• Company has policy to deduct pay of late


My company has a policy that deducts pay for every 4th day I turn up late. The office starts at 9.30, but if I come after 9.40 for 4 days I lose 1 days pay. 
The problem here is 1 days pay is not calculated as (monthly salary/30). It's calculated as (monthly salary/ days excluding Saturday and Sunday) .So for the month of March instead of calculating it as 20000/30, it will be calculated as 20000/22.

Also I don't get payed for working on that day too. Is this a legal way to structure the policy.
Asked 6 months ago in Business Law from Hyderabad, Telangana

Employee's are expected to adhere to office timings.


A grace time of 15 minutes is generally permitted after which it will be treated as “Late – Coming”. 


3) if you dont come on time for 4 days then deduction of one day pay is reasonable 

Ajay Sethi
Advocate, Mumbai
67939 Answers
4102 Consultations

5.0 on 5.0

If this is a pvt. ltd., I'm afraid you have a legal recourse against them for having a policy like this on deducting salary of employees for coming late to the office.

Pvt. Ltd. companies have a certain degree of flexibility to have their own policy and regulations on subjects like this, and as long as these are not in conflict with the law of the land, you cannot raise you voice against these.

Having said that, if you believe that the Policy at hand is too regressive, you along with at least some other employees, must lodge a protest against this with your company. 

Vibhanshu Srivastava
Advocate, New Delhi
8700 Answers
141 Consultations

5.0 on 5.0

It is not legal but you need to challenge the internal policy with labour laws. You can file a complaint go labour department for the same

Prashant Nayak
Advocate, Mumbai
13645 Answers
23 Consultations

4.6 on 5.0

Hi, you can file a  civil suit at the workmanship forum ..

Hemant Chaudhary
Advocate, Gurgaon
4276 Answers
31 Consultations

4.9 on 5.0


1)  Strictly speaking it is not legal to deduct payment from salary in the manner described, however your consent for the same may have been obtained by the employer. Even if this be the case the calculation of 1 day must be by dividing the entire days of the month and not excluding week ends. 

2)  The policies adopted by the employer being,  a private one has to be uniform and consistent for all employees. Beyond this you cannot gold him legally liable as he can resort to the tactic of termination. 

S J Mathew
Advocate, Mumbai
2466 Answers
110 Consultations

5.0 on 5.0

See the private limited company can form it's own regulations see they are deducting salary after you get late on 4 days wherein this is reasonable as companies can deduct half day salary on same day you are late.

Shubham Jhajharia
Advocate, Ahmedabad
20098 Answers
79 Consultations

5.0 on 5.0

Calculation of salary is invalid, this cannot be consider as regular employment on per day wages. Well, deduction of payment for coming late and penalty accordingly is privilege of company, cannot be questioned.

Yogendra Singh Rajawat
Advocate, Jaipur
13877 Answers
18 Consultations

4.6 on 5.0

Section 7 (2) (b) is a general clause permitting an employer to deduct wages if an employee absents from work. At the same time, section 9 speaks about deduction of wages for abstaining from work place while having come for work. In both the cases, unless it is a concerted effort of ten or more persons without notice and without due cause in which the deduction may be 8 days wages, the deduction should be proportionate to the wages. 

Mohammed Mujeeb
Advocate, Hyderabad
10904 Answers
4 Consultations

4.5 on 5.0

This may be the company police which you cannot object because its a common rule for everyone and not particularly for you alone.

  You cannot agitate over it especially when you are at fault.

If you have accepted the offer letter for this employment then there is no illegality in it.



T Kalaiselvan
Advocate, Vellore
57630 Answers
724 Consultations

5.0 on 5.0

1. It is the policy of company,and apparently it is not arbitrary. Hence, it cannot be impeached in a court of law.

2. It is the duty of every employee to obey all the rules of the employer. 

Ashish Davessar
Advocate, Jaipur
26474 Answers
791 Consultations

5.0 on 5.0

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