I worked for a company from 15th Sep '08 to 3rd Dec '08. Today (24th Dec), they are giving me the salary for the November month through a cheque with a 10% deduction, saying that due to less profit, they decided to cut 10% of everyone's salary. However, I was never given any such information until my last day of work. The mobile and fuel bills are also not reimbursed, stating that the phone number is not in my name. I used that for official purposes during office hours when landlines were out of service. This phone is under my friend's name, but I have been using it for a long time, and the same number is in my official email signature. I was not willing to accept the 10% deduction without clarification, leading to a heated discussion with the branch in charge, after which he even stopped the cheque. I learned about this development through a message from the bank where I submitted the cheque.

My question is: Can a company reduce employees' salaries by 10% after a committee meeting without the employees' consent? Am I eligible for mobile bill reimbursement if the account is not in my name? Should I consider going to the labor court for stopping my payment in this manner? Please advise on the best course of action.

Thanks, Sandeep, Hyderabad.

From India, Bangalore
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Mobile bill reimbursements are absolutely not eligible, as there is no proof that you had used that number, irrespective of the official signature which is not an admissible proof. These are complexities attached to full and final settlement. The organization may allow such payment, but it cannot be claimed as a matter of right.

A 10% salary cut can be implemented by companies even without informing the employee through a notification in a visible area like a notice board. Handling such a salary cut during a recession can be very tough unless you have a trade union. If the official notification date is after your last date, you can file a case against the company for the 10% salary cut. However, such an effort is an event of upholding policy as court fees, such as transportation charges for attending court hearings, loss of time in court hearings, food consumed outside during such periods, etc., might exceed your 10%. This also requires some insider information regarding the official notification date. If your HR/Branch Manager is honest enough, ask them for the notice served to you specifically as this could be a document you need to support your last drawn salary.

Regarding the stopping of a cheque, if you are filing a case in the earlier condition, you can add this; otherwise, seek under the negotiable instruments act.

Please understand that the branch manager is acting under rage provoked by a tug-of-war. Try pacifying him, encash your cheque, and take all necessary documents pertaining to the notice. If you are ready to fight for the policy, buzz me back with dates, and let me see whether my two cents can help.

From India, Madras
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I am heartily thankful to you for this help, Sir.

Another question I would like to ask is:

Can I file a case for stopping the cheque and the 10% deduction matter together? I don't have any document other than the offer letter.

What is the probability that I'll get my money?

He stopped the cheque after that Tug-of-war scene. He also filed a complaint at the area police station against me, claiming that I broke his laptop. However, the police did not write any report.

Regarding the 10% salary cut - Nobody in our office received such a notice even during the notice period. The committee meeting he refers to was held around the 5th of December, which is after my last date. So, can they cut the salary for November?

Concerning mobile bill reimbursements - I used the phone for personal purposes as well, and I am only asking for the amount I used officially, which totals around 700 bucks.

Plus, I couldn't understand these lines:

"This also stipulates some insider information as to the official notification date. If your HR/Branch Manager is honest enough, ask them for the notice served to you specifically, as this could be a document you need to support your last drawn salary."

From India, Bangalore
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Mobile is purely out of the question. As far as notification is concerned, if the so-called committee meeting is held after your exit, they cannot deduct your November month salary, as such decisions are only valid for individuals still under service. However, without written notification, the company can always prove the contrary when challenged in court. It is recommended to try to obtain the notification.

You can consult a lawyer for filing a case for the return of the cheque. However, it is safer to pacify your branch manager, obtain the notification, and then get the cheque encashed.

From India, Madras
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Sir, now the branch manager is not even ready to give me a single penny, saying that I broke his laptop. But the truth is that during the tug-of-war, he himself swiped the table, causing the laptop to fall off the table. He has really acted cheaply this time.

Do you have any idea about the fees in the labor court for filing a case? And what is the probability that I will get my money in this scenario (laptop issue)?

From India, Bangalore
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Fees in labor courts are very low. Lawyer fees could be higher, but it depends on the kind of person you choose.

Now, with new details, it seems that what has happened is something beyond compromise. The probability of getting money is always there but may decrease when your ex-company manages to obtain a copy of the FIR in the laptop case.

From India, Madras
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Yeah, the situation is bad. But the police denied to write any report on that matter. I wrote an email to my CEO, to which he replied: "Salaries have not yet been paid and will be settled in due course of time. In your case, we have to figure out the damage to the laptop, and we'll then determine the basis."

Should I wait for them, or should I go ahead to the labor court?

From India, Bangalore
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