Dear Sir,
I was working in a reputed financial company for the last five years when one day suddenly I was given a letter stating a salary cut of 15% which was effected from the same month of the date of letter. I signed the copy of letter and handed over the same to the HR person. The very next month I and some more people were asked to leave the company with immediate effect. On asking the reason of such decision I was told the cost cutting was the reason. Since the decision was in group so I didn’t argue on that matter. I wrote the resignation letter on HR request.
MY QUERY :
What is the law says on salary part. Can an employer cut the salary for the current month without giving prior notice to the employee?
This salary cut will give a huge difference in my Gratuity amount for which I am entitled for after a service of 4+ years.
One more point : The information given to me while terminating the service of cost cutting was totally false as recruitment is still going on i
From India, Mumbai
If you are an employee working in an industrial establishment like factory or work shop or mine or transportservice etc and your wages is RS.10000/-or less per month, your rights are protected by the Payment of Wages Act 1936. Other wise your claim has to be dealt with under the law of Contracts or under the principle of 'equal pay for equal work' gauranteed under the Constitution.
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
54B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
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Letter to employees for salary cut.docx
SALARY SHEET CALCULATION.xls