Labour Code Act, 2010

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(4) Nothing in this section shall be construed as prohibiting the distributing to an employee of gratuity received from customers of the employer as part of remuneration for services, and the amount distributed in gratuity shall not be considered a part of any basic wage which is fixed by an Order made under section 40. Wages to be paid to employee.

56. Wages shall be paid directly to the employee to whom they are due or to a person specified by him or her in writing except as provided in section 58.

Deductions.

57. (1) Subject to subsection (2), an employer may deduct from remuneration payable to an employee under any contract of employment the following: (a)

any tax, rate or other deduction imposed by any law;

(b)

any money advanced by the employer by way of loan, provided the amount deducted accords with the agreement made between the employer and the employee at the time of the loan, and that no interest, discount or similar charge may be imposed on such loan; or

(c)

any sum of money which an employee has authorised in writing to be deducted for other purposes, except for the purpose of obtaining or retaining employment for or in respect of any fine, or for bad or negligent work or for damage to the materials or other property of the employer, except when the damage is occasioned by the willful misconduct of the employee.

(2) The total sum which may be deducted or stopped in any pay period shall not exceed one-third of the gross wage, excluding the value of any payments in kind, of the employee in the applicable pay period. (3) Nothing in this section shall prevent an employer from recovering from an employee, whose employment is terminated, the outstanding balance of a loan granted by the employer to the employee, which loan may be deducted from any accrued gross wages due to the employee. Statement of deductions.

58.

Where an employer makes a deduction from an employee’s

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