Rule 18. Procedure deduction under sub-section (2) of section 21

for 18. (1) Any employer intending to make deduction for damages or loss under sub-section (1) of section 21 from the wages of an employee, shall give the show-cause notice to the employee concerned, either electronically or in writing, in a language understood by the employee, stating the reasons therefor regarding the value of the damage or loss to the goods entrusted to the employee. The employee shall be given an opportunity of not less than 15 days to present his case.

Provided that if the deduction is to be made in respect of more than one employee or workman, the show cause notice shall be issued by written order to each employee or workman separately. On establishment of the charges, deductions shall (2) be made from the wages of the employee in accordance with sub-section (3) of section 18. In case no reply is received from the employee (3) concerned within 15 days, the employer shall make such deduction from the wage of the employee concerned and the same shall be intimated to the employee within fifteen days of the date of such deduction. The order regarding deduction shall be made by (4) the employer in a language understood by the employee. The employer shall report such deduction to the (5) Assistant Labour Commissioner or higher officer having jurisdiction within 10 days from the date of such deduction. In case of illegal deduction or if the employee has not been given adequate opportunity of being heard by the employer, then after recording the reasons, the Assistant Labour Commissionerorhigher officer shell hear the matter and take legal action.