Employment agreement

Whether companies can consider salary as a compensation for breach of contracts?? Is it Legal ? Can salary recovered by employer from employee?

2 Answers
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Ayantika Mondal
Advocate Ayantika Mondal Answered: 14 Aug 2026

Dear client, An employer cannot automatically treat an employee's salary as compensation for breach of contract or recover any amount they choose. Deductions from wages must comply with applicable employment laws and the terms of the employment contract. If an employee causes a legally recoverable loss, the employer may pursue appropriate contractual or legal remedies, but unilateral deductions may be unlawful. The exact position depends on the employment agreement, nature of the breach and applicable labour laws. Thank you for contacting us. If you have any further queries, kindly do not hesitate to contact us again. Thank you!

Admin
Advocate By LEAD INDIA Answered: 14 Dec 2022

Hello sir,

If you have signed any  contract with the company and you fail to fulfill the contract then you have to pay the compensaition as decide in the contract, and as per you query the information given by you is not complete so please call on our helpline number where you will be guide by our legal experts.

Thank you

 

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