Hi Harsh,
A private employer CAN reduce an employee's salary if the employee fails to meet the performance standards of the employer. (it can apply to other T&C of the employer too)
However, this is a very very stringent action which is used as a last step as this is highly demotivating.
Your friend cant sue the ex-employer nor get any money from them. If your friend really wants to improve, then he should find out from the employer why exactly his salary was reduced and how he can improve his performance (if that was the reason).

From India, Hyderabad
Dear
Reduction of Salary in a way in future i.e by witholding of increments can be done provided it is done as a punishment for misconduct that too after following the due process by conducting a domestic enquiry.The other way is by way of a settlement with the workmen as an avoidance of lay off or closure involving the Govt Authorities i.e Deputy Labour Commissioner.
With Regards
V.Sounder Rajan

E-mail : ,


From India, Bangalore
Hi Harsh,
I am in complete agreement with Mr.Sunder Rajan.
Salary or wages paid to employee for the relative market worth of the job. If employee is unfit or performance is not satisfactory then employer can provided giving him notice with reasonable opportunity to improve may either demote with lowering the pay (salary). But this action of demotion and lowering pay only happen during probation period.
Once employee has establish his competance beyond probation period and employer continued his services without raising objection on his competancy in perofrming job employer cannot reduce the pay of employee until employer issues notice with justification for agreement to this effect due to the reasons beyond his control with mutual agreement between employee and employer salary can be reduced.
Employee's salary is always protected by the law once employee has completed probation period and thereafter.
Regards
sawant

From Saudi Arabia

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