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CS Professional · Labour Laws and Practice · Law of Wages

Deepa joins Bharat Pharma on 1 April. Before joining, the company gave her an advance of Rs 6,000 for relocation expenses and another Rs 4,000 for travelling expenses to reach the workplace. Under Section 23, how may these be recovered?

Under Section 23(a), an advance given before employment began is recovered from the first payment of wages for a complete wage-period, but advances given for travelling expenses cannot be recovered. So the Rs 6,000 relocation advance is recoverable and the Rs 4,000 travelling advance is not.

  1. ABoth are recovered in instalments under conditions to be prescribed
  2. BThe Rs 6,000 is recovered from the first payment of wages for a complete wage-period, but nothing may be recovered of the Rs 4,000 travelling advanceCorrect
  3. CNeither advance can be recovered, as they were given before employment
  4. DThe Rs 6,000 and Rs 4,000 are both recovered from the first wage payment in full

Explanation

Section 23(a) provides that an advance given before employment began is recovered from the first payment of wages for a complete wage-period, but no recovery is made of such advances given for travelling expenses. So the Rs 6,000 relocation advance can be recovered from the first full wage-period payment, while the Rs 4,000 travelling advance cannot. Prescribed conditions apply to advances given after employment began.

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