Umakanthan53
Labour Law & Hr Consultant
+1 Other

Dear All,
I had joined in a Ltd company in 1986. After 12 years my company is merged with a MNC.At the time of appointment Indian company offered me 15℅ of consolidated salary as superannuation in the offer letter.But at the time of harmonisation MNC has changed the words as superannuation is 15℅ of salary and supplementary salary.MNC is depositing 15℅ of my basic salary in superannuation account which is as against of my parent company.
What is meant by supplementary salary?
Am I eligible for superannuation at the rate of 15℅ for my total salary amount ?
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Your company has no right to change your contract when it is merged with the MNC. If the word used is salary or consolidated salary in your original offer letter, then they have to pay you the same. Salary in no sense means Basic Salary. It means all remuneration in cash or kind. So simply speaking they have to pay you what the old company has agreed to pay.
You can :-
1) File a civil suit under Indian Contract Act on your old company.
2) File a case under 420 IPC, as this is cheating. As your company made a promise it never intended to keep.
3) Go to labour Court under Industrial Employment Standing Order
4) Go to labour Department Under Shops and Establishment Act

Dear Pavithran,

Supplementary salary is the additional remuneration paid to the employees in the form of allowances or otherwise over and above the basic wages. The speciality of this supplementary salary is that whatever paid under these heads no consequential effect on certain statutory indirect monetary commitments like gratuity and not exempt from Income Tax.

The course of remedy in the described situation is determined by the status of your employment i.e whether you are a "workman" as per section 2(s) of the Industrial Disputes Act,1947 at the time of merger and after as well or you were initially employed as a workman but subsequently elevated to that of supervisory/ administrative/ managerial cadre after the merger.

If you are a workman before and after the merger, the new management can not modify the above service condition in a less favourable way as per the condition stipulated u/s 25-FF(b) of the ID Act,1947.

In either case you are eligible for superannuation benefits at the rate prevailing before the merger.
Dear Umakanthan,
Thank you very much for your valuable in puts. I am very happy to see your words "In either case you are eligible for superannuation benefits at the rate prevailing before the merger"
Thanks,
Pavithran.
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