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Deduction of money from Full and final payment


08-Jul-2026 (In Labour & Service Law)
I served my notice period of 60 days, and took few days of leave, my organisation deducted the money for the leaves taken, also they deducted a huge amount in the name of "Notice period recovery". My notice period was till 1st Jun, but they paid the salary till 30th may.
Answers (2)

Answer #1
874 votes
First I need to go through your appointment/offer letter , as you mentioned that they deducted a huge amount in the name of notice period recovery then immediately send them a legal demand notice for recovery of the dues.
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Answer #2
720 votes
From the facts stated by you, if you have duly completed the entire 60-day notice period, the employer cannot arbitrarily recover notice pay unless such recovery is specifically permitted under your employment contract or you actually failed to serve the required notice period. Deduction of salary for leave availed may be valid if the leave was unpaid or exceeded your available leave balance, but “notice period recovery” should be supported by the appointment letter or company policy. Further, if your notice period extended till 1st June, you are ordinarily entitled to salary for the period actually worked, including 1st June, unless there is a valid contractual provision stating otherwise. Request a detailed final settlement (F&F) statement showing the basis of each deduction. If the employer fails to justify the deductions, you may issue a legal notice and, depending on your employment status and applicable labour laws, approach the appropriate Labour Authority or competent court for recovery of your dues. Keep your appointment letter, resignation acceptance, salary slips and F&F statement safely for further action.
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