Rahul Sethi
Ranganathan V
Human Resources
Hr Manager
+1 Other

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Dear Seniors,
As we all know due to recession in all the major sectors employers are taking it as a option to reducce employee's salaries up to 20 -25 %. Keeping in view the concern of the employers it may be right up to some extent but the thing is What is the best way to do this.
Can one deduct salaries without any kind of notice to employees ?
Is there any Consent required from Employee's side ?
Can it be challanged ?
Kindly Advice.

From India, Delhi
Employer cannot reduce salaries of employees without any reason or giving employee opportunity for knowing the facts and in this case if company is not doing well he can ask employee to re-negotiate salary or give employee notice for termination as per his appointment letter clause.
if employee agree to continue with reduced salary that should be brought on record of minutes of meeting with agreement in writing that both the parties are accepting voluntarily in the interest of employment and organization.
this is only way because salary of employee are protected and can not be reduced arbitarily

From Saudi Arabia
In the current times of recession where there is tremendous pressure on organizations to keep going, reducing salaries by 5, 10, 15, 20...25 % has become the norm. However, such a move must be appropriately communicated to the employees. Like Badlu mentioned, reasons should be cited for reducing the salary.
From India, Pune
1. Changed terms and conditions of employement need to be informed to an employee. This is typically say that his revised salary package is XXX CTC and will be effective which date.
2. A policy can be drafted for all employees on a 20% cut on the CTC basis. This revision is disclosed as a policy only. This too is possible since its applicable to all employees across board.

From India
Dear All,
Thanks for responding and valuable inputs.
I understand that there has to be a proper way of deducting or reforming the salry structure of employees but what is the wayout for the people who does not want to accept it.
for example if someone joined a particular organisation on 20 K whereas he was withdrawing almost same amount or a little less amount in the last org. and now he is being asked to work on 15 or 16 thousand. Why should one accept it and go one or two years back.
What is the way the practice can be stopped and employer's can be made understand that this is not right. (Always keeping in view the Risk of loosing job)

From India, Delhi
You Are Asking Question " Who Will Bell The Cat?"
Its Duty Of Hr To Inform That No Law Can Defend The Such Act.. Of Employer.
Even If You Make Amendment In The Policy That Does Not Apply To Employees Join Before Effective Date Of New Policy.
To Bring Old Employee Into Ambit Of New Policy First Old Salary Agreement Or Apppointment Letter Clause Needs To Be Amended As Mentioned Before In My Earlier Comments.
As Far As Drawing Notice To The Employer That This Is Not Legal Practice Employee Who Is Resigning Or Leaving Organization Shall Be Best Choice To Raise Dispute For Claim And Employer Automatically Will Come To Know.

From Saudi Arabia
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