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Labour

Can an employer deduct salary as penalty for resignation without notice?

I resigned and my employer deducted 45 days salary as "penalty". My appointment letter mentions 1 month notice. Is this valid?

5 answers 2025-04-12by Preethi S.

Best Answer

A
Adv. Ananya Iyer

Verified Advocate · Bar Council of India

Your employer can only recover the actual notice period shortfall. Any deduction beyond the contractual notice period or amount is illegal under the Payment of Wages Act. File a complaint with the Labour Commissioner.

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