chaitra_krishnaiah Started The Discussion:
Dear Seniors,

Our management have decided for salary slash for one of of employees for non performance. Can anyone provide me with a sample letter of salary reduction.

Kindly give me a sample as early as possible since i need to submit it by End of the Day.

Thanks in advance

Member Opinions In This Discussion
Rahul Chhabra
India, Delhi
Senior Manager - Hr
India, Calcutta
Hr & Administration
India, Delhi
Consultant Labour Laws
Anurag Jain
India, Jaipur
Hr Manager
John Chiang
China, Shanghai
India, Bangalore
India, Madras
India, Bangalore
Hr Executive
+4 Others

Dear Chaitra, Is it temporary or permanent salary reduction? If temporary talk to the employee, if mutually agreed send a mail on the same and get it acknowledge from the employee.
dear i donot think that u can reduce someone salary for not performing upto satisfaction level.however u can take other action like warning and if not improving even termination. j s malik
Hi Harshal,
It is Salary reduction until, further notice.

Malik Sir,
We warned her several times, but all in vain. We dont want to terminate the employee as we follow the policy of Employee friendliness.
dear chaitra but i think legally it is not acceptable and you can withhold the incements as punishment but u can not reduce salary.let other friends give their views on this point. tks j s malik
as understood from your writings, you have a policy of employee friendliness and how is it possible to slash out ones salary
as per act employer cant slash or reduce the salary whichever he is payable to an employee, instead you give him warning letter and demote him to a lower designation or hold his increments and incentives

we cant slash out what he is getting but we can demote him in the appraisal period

Frankly that's the wrong way to go about the situation. If you have as you have said already warned the employee on several occasions verbally, then you need to give her a formal warning and then go on. The next best step would be to demote her as was suggested by Raam. Slashing salaries can have a tumble down effect in the organisation.
Dear Chaitra,

All the suggestions are great above. In order to no harm on this or against the law, you can change this employee to work other department.

TO: [ ]
FROM: [ ]
DATE: [ ]
We all continue to work hard here at [company] despite the downsizing that is almost certainly on the horizon. I am pleased with contributions you are making to our team.
Indeed, my recommendation that your position be changed to [lower position] is a reflection on your non performance, but rather an effort to save money in hopes of saving jobs in the long run. If you accept the change, your duties will shift from [current duty] to [new duty]. In addition, your pay will decrease [amount].
I am sure this will not appeal to you, but keep in mind that this change could help preserve the department, the company and our future as a team. I hope you will have good performance in the new role. Know that I continue to look for ways to make the situation better.
Hope this helps.
Best regards,

please dont do this , its terribly de- motivating . you will never acheive what you are lloking for , such negative measures will only create grudges , Think about it.......
i really dont know what is your justification behind doing this.
Thank you so much for all your replies....
We could have asked the employee to resign from her role, but we didnt wanted to do this. The management finally decided this as this was the only solution to make the employee work harder.
Labor laws also do not restrict this.


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