Employer Can't Deduct Excess Amount From Retiral Benefits Paid To Employee On Erroneous Fixation Of Pay Scale : Calcutta High Court

The Calcutta High Court ruled that an employer cannot deduct excess amounts from an employee’s retiral benefits, even if the pay scale was erroneously fixed. In this case, the employer had mistakenly paid higher benefits than due, but attempted to recover the excess amount. The Court found that this recovery was unjustifiable, as the employee had no responsibility for the error in fixation. This decision affirms that employees are entitled to receive their full benefits as per the correct pay scale, and employers cannot arbitrarily deduct amounts from the employee’s dues, ensuring fairness in financial matters involving employees' retirement benefits.