After completing 6 years in private stock broking firm, the firm decide to reduce the salary to 50%, and compulsory reduce the basic salary also on pro-rata basis...this has happened in last 3 month only. If resigned how the gratuity will be calculated.
In case of private bse listed company, can employee's salary can be reduced to this extend.
The offer letter does not mention anything about all these, only disclose the details as 'annexure'.
Please help.
From India, Kolkata
In case of private bse listed company, can employee's salary can be reduced to this extend.
The offer letter does not mention anything about all these, only disclose the details as 'annexure'.
Please help.
From India, Kolkata
There is nothing in law to prevent reduction in salary as such
Pf act only prevents reduction to include pf amount in original salary.
Ofcourse salary has to be higher than minimum wages
However, this reduction amounts to a change of terms of employment
So it can among to an industrial dispute.
If it is raised as an industrial dispute, then it needs to be resolved by conciliation
Employees in a stock borking company are not likely to have an union, so u think the possibility of it being raised as an industrial dispute is low.
The revised salary is not effective u less you have accepted it.
If u have accepted the letter of reduction without protest, then you are now bound to it.
Unfortunately gratuity act did not envisage such a scenario. It only talks of last salary. So gratuity will be computed based on last salary drawn (which is 50% lower). I think you can complain to the labour officer or authority under gratuity act and take his help, specially if you did not accept the changed salary.
If the company is in a bad shape, you will probably find it difficult to get your money. In any case, adjudication will take a long time. Speak to your HR and try and convince the management to pay gratuity on full amount instead of reduced salary. May be they will agree
From India, Mumbai
2383Pf act only prevents reduction to include pf amount in original salary.
Ofcourse salary has to be higher than minimum wages
However, this reduction amounts to a change of terms of employment
So it can among to an industrial dispute.
If it is raised as an industrial dispute, then it needs to be resolved by conciliation
Employees in a stock borking company are not likely to have an union, so u think the possibility of it being raised as an industrial dispute is low.
The revised salary is not effective u less you have accepted it.
If u have accepted the letter of reduction without protest, then you are now bound to it.
Unfortunately gratuity act did not envisage such a scenario. It only talks of last salary. So gratuity will be computed based on last salary drawn (which is 50% lower). I think you can complain to the labour officer or authority under gratuity act and take his help, specially if you did not accept the changed salary.
If the company is in a bad shape, you will probably find it difficult to get your money. In any case, adjudication will take a long time. Speak to your HR and try and convince the management to pay gratuity on full amount instead of reduced salary. May be they will agree
From India, Mumbai
The company is not in bad shape, but shifting the focus to real estate instead of it core business, now want to get rid of top people. Even HR know these..and are in search of better oppurtunity. Based on initial offer later (six years back) the company keep promoting designation and salary, but all of sudden want to reduced the salary to 50%, even they are talking paying employee only on variables ( performance based at individual level for top people also). They are recruiting low cost employee just to manage the regional affairs.
The salary 50% get credited into bank account hence hence nothing is accepted even no modified letter was issued. This has happen to people with ranking or regional manager and above.
Since the sector is going thru a turbulent time, immediate change and getting result is a immediate result are a distant dream.
kindly guide.
From India, Kolkata
The salary 50% get credited into bank account hence hence nothing is accepted even no modified letter was issued. This has happen to people with ranking or regional manager and above.
Since the sector is going thru a turbulent time, immediate change and getting result is a immediate result are a distant dream.
kindly guide.
From India, Kolkata
Well, it depends on what extent you wish to go to.
If you wish to raise a dispute, then this is a ground available to you : I was not informed, my consent was not taken and I did not agree. I started asking why i was getting half the salary and i was told it will come later. Finally i was told that i will only get 50%, so i resigned and I want balance salary (since i didnt agree to half salary) and i should be paid gratuity on full salary.
You can do the above, if you are leaving. Cause they will terminate you when you raise this type of a dispute.
(You can fight the termination, but in the meanwhile you are stuck without work)
But then, do you have an alternate job ?
If you continue working at 50% of the salary, then you are in effect accepting the change
(there is only so long you can say you didnt agree but kept working at the new wage - it will amount to implied acceptance)
The other alternate is not to fight with the company, but look for another job that is giving better than what you have here.
You will at least get your full and final settlement without hassle
From India, Mumbai
If you wish to raise a dispute, then this is a ground available to you : I was not informed, my consent was not taken and I did not agree. I started asking why i was getting half the salary and i was told it will come later. Finally i was told that i will only get 50%, so i resigned and I want balance salary (since i didnt agree to half salary) and i should be paid gratuity on full salary.
You can do the above, if you are leaving. Cause they will terminate you when you raise this type of a dispute.
(You can fight the termination, but in the meanwhile you are stuck without work)
But then, do you have an alternate job ?
If you continue working at 50% of the salary, then you are in effect accepting the change
(there is only so long you can say you didnt agree but kept working at the new wage - it will amount to implied acceptance)
The other alternate is not to fight with the company, but look for another job that is giving better than what you have here.
You will at least get your full and final settlement without hassle
From India, Mumbai
I agree with Saswatabanerjee, Senior Member
Because the Gratuity act mentioned deduct on last salary drawn. Therefore, Gratuity will be computed based on last salary drawn if you have accepted therefor and if statutory norms permit to reduce salary to 50% lower.
PADALA VENKATA SUBBA RAO
YANAM-533464
From India, Hyderabad
Because the Gratuity act mentioned deduct on last salary drawn. Therefore, Gratuity will be computed based on last salary drawn if you have accepted therefor and if statutory norms permit to reduce salary to 50% lower.
PADALA VENKATA SUBBA RAO
YANAM-533464
From India, Hyderabad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF - TAKE HOME SALARY REDUCE NOW.pdf
FW Full and final settlement of all my dues including salary leave encashment Gratuity PF .zip
Salary-Note.doc