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CS Professional · Labour Laws and Practice · Law of Wages

Hari Engineering has 12 workers who, acting in concert, stay away for three days without giving the notice their contracts require and without reasonable cause. Their contracts make eight days' wages due to the employer in lieu of notice. Subject to rules made by the appropriate Government, what deduction may the employer make from each worker?

Because ten or more workers acted in concert without notice or reasonable cause, the deduction can include the proportionate wages for the absence plus an amount not exceeding eight days' wages due under the contract in lieu of notice, subject to the Government's rules.

  1. AOnly wages for the three days of absence, with nothing for notice
  2. BWages for the three days of absence plus an amount not exceeding eight days' wages due in lieu of noticeCorrect
  3. CWages for eight days only, in place of the absence deduction
  4. DWages for the three days of absence plus fifteen days' wages as a penalty

Explanation

Under the proviso to Section 20(2), if ten or more employees acting in concert absent themselves without due notice and without reasonable cause, the deduction may include an amount not exceeding eight days' wages due in lieu of notice. The 12 workers meet the threshold of ten. This is in addition to the proportionate absence deduction. Fifteen days has no basis in the text.

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