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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?

Adv. Ananya Iyer

Your employer can only recover the actual notice period shortfall (in your case, 0 days if you gave 1 month notice). Any deduction beyond the contractual notice period or amount is illegal. You can file a complaint with the Labour Commissioner or approach the Labour Court under the Payment of Wages Act.

5 answers 2025-04-12by Preethi S.View Answers