Madhu.T.K
Industrial Relations And Labour Laws
Pravin.k
Hr Officer
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms

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Dear
Sir
I am working in Ltd Company (Unsystematic ) . yesterday we had meeting with our MD regarding Special allowance Jan -2013..but our MD is not willing to give SP allowance to every one ..rather he told us to include previous SP allowance in to the basic ..then who’s basic cross 6500/- Rs then do not give SP allowance to them.
Is it right? what to do?? Is there any legal issue??
Regards
Pravin .K

Dear
Sir
I am working in Ltd Company (Unsystematic ) . yesterday we had meeting with our MD regarding Special allowance Jan -2013..but our MD is not willing to give SP allowance to every one ..rather he told us to include previous SP allowance in to the basic ..then who’s basic cross 6500/- Rs then do not give SP allowance to them.
Is it right? what to do?? Is there any legal issue??
Regards
Pravin .K

Dear Pravin
I understand your predicament; but unfortunately there is little you can do. The MD representing the company is trying to avoid further statutory compliances to save on CPF outgo.
Try educating the management on broader goals of employee welfare and harmonious relations with employees and its positive impact on enhanced productivity
Such companies will hamper your growth, so look out for better opportunities.
Warm regards.

Respected
Raj Kumar Sir
Thank you for your valuable reply. today afternoon we had discusson with our MD , ED ..but no one is ready to listen any thing from our side..they think we were wasting money on DA.. Twice in year .
so if we followed the instruction and if we make changes in salary breakup.
1) .is their legal issue will come up in future...??
2) their any law regarding Dearness allowance applicability..???
Regrds

Not paying DA to those whose salary exceeds Rs 6500 is unfair. If you have a pattern of salary with DA as a component it shall be applicable to all, irrespective of salary. Moreover, I cannot understand what is the significance of 6500 in it. There can be different kinds of DA to different categories of people, say, Variable DA for workers and fixed DA for officers. But putting a cap of salary for payment of DA is not fair.
Madhu.T.K

I agree with Mr. Madhu's observations; which says it is unfair.
Further;
1) Apart from being unfair; it would also be ILLEGAL if while breaking up salary for those who are covered under the Minimum Wages; if you do not provide for at least the DA as per Govt. notification.
That is where the legal issues may come up in future.
2) In case of private sector, I have not come across any law regarding DA applicability; except for the cases cited above.
Warm regards.

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