Query
Dear HR members,
Please guide as is it legally viable to reduce gross salary for all employees? if no, please advise as under which act we can not do so.
Looking forward for your quick response.
Regards,
Sashmita
24th September 2014 From India, Delhi

PARTICIPATING IN DISCUSSION:
Saswatabanerjee
Partner - Risk Management
Kulkarni.alok
Hr Trainee
SASHMITA
Hr Professional
Pradeepullanat
Consultant For Social Compliance, Factory
+1 Other

Dear sahsmita,
The bsaic salary cannot be reduced as per sec !2 of PF act if the employees are covered under the aforesaid act. To reduce the gross salarry of all employees either all of there peroforamce shoulld be non satisfactory or there should be business contraction problem owing to which the company is forced to give lay offs, but as an alternate you can reduce the salary after the discussin with employees.
This is Alok. I am a cite Hr member and have completed my MBA-HR,DLL and now working as HR trainee at Cosmo films public ltd. I will be glad to exchange ideas and share knowledge. As i have recently begun my career in this profession, i am also looking forward for professional networking.
You can write to me at for discreete details.
Regards.
24th September 2014 From India, Pune

Well i think,it should not fall in his purview... may i have ur email id.
24th September 2014 From India, Pune

Before looking to the legality in any act, please understand that there would be unrest among all employees, they get demotivated, and the productivity will be lessen is it viable to do so for the employer ?
Please elaborate your query for what reason/under what circumstances you want to reduce the Gross Salary of all the employees, so as to give appropriate view
24th September 2014 From India, Ahmadabad

Sec 12 of PF act does not prevent you from reducing the same of any or all employees. The section says that you can not reduce salary to partially or fully set off / pay the employers portion of PF.
So where the salary reduction is not intended to pay for employers portion of PF, the department has not object to it.
So, legally there is no law saying salary can not be reduced.
However, this amounts to change of condition of employment and will be covered under the Industrial disputes act. Therefore, approval of the employees is required
24th September 2014 From India, Mumbai

Dear Friends,
It is universal law, according to me, you can not reduce the salary of any employee unilaterally. Employement is a contract. Terms of any contract are agreed by both the parties. Both the parties are abide to agreed terms of contract, legally. Therefore, I feel if you reduce the gross it will be illegal.
This is my specific and to the point answer to the queriest. I have not touched upon PF Law and ID Act which is out of contest here.
26th September 2014 From India, Mumbai

Hi Sashmita,
You can notice many debatable answers here. Because, you have not specified, why do you want to do this?
If a company has the power to remove an employee on some exceptional cases, they can reduce salary in some exceptional cases also. However, this can be challengable under court of law.
So, please don't think of doing things wich are un -exceptional. Systems are made for good reasons not for ones own convenience. Better educate your seniors for good practice.
Thanks
26th September 2014 From India, Mumbai

Thanks everyone.
It is indeed demotivating step to reduce salary.
As an HR you have to look into both (employee & employers) perspective.
With all your input i have been able to justify my management that salary not to be reduced.
Regards,
24th November 2014 From India, Delhi

Please login to participate in this discussion or start your own. Create Account



About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network

All rights reserved @ 2017 Cite.Community™