RR Limited has deducted ₹500 from each worker of the Factory for depositing to Prime Minister Relief Fund without authorisation of any worker. The General Manager HR informed that the Board of directors has decided to de

Section 7 of the Payment of Wages Act, 1936 deals with deductions which may be made from wages. According to Section 7(2)(p), deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely- deductions, made with the written authorisation of the employed person, for contribution to the Prime Minister's National Relief Fund or to such other Fund as the Central Government may, by notification in the Official Gazette, specify. In the above case, there was no written authorisation, therefore, the deduction is illegal and mandatory to refund. RR Limited will be subject to Penalty under section 20 of the Act for contravening provisions of section 7.