Partner - Risk Management
Principal Hr Consultant
Labour Law Index
Before affecting change in wage structure 21 days prior notice has to be given to affected employees, The notice has to be given as per the first item of Fourth Schedule (under section 9A) of The Industrial Disputes Act, 1947. If you affect changes without giving prior notice & if labour authorities come to know about it, you could be in trouble. After all reducing wages is serious, not many do it.
18th May 2017 From India, Mumbai
18th May 2017 From India, Kolkata
Please give following details:-
1. Where is your factory located?
2. Do you have Union? If not, fine or else have to follow the ID Act
3. Product being Manufactured
4. How many years you are into business?
5. For Management category employees you can explain and get reduced their pay.
6. For staff and Workmen category handling such issue is very sensitive.
7. 21 days notice to be given
8. How is your business market and what is your strategy?
9. can give VRS option?
10. Giving suggestion from outside is easy but implementation !!!
11. can you share your contact no.
12. I am ready to assist you as HR Consultant in this subject matter ON ASSIGNMENT BASIS OR PERMANENTLY.
13. My name is V.MURALI with 33 years of various industries experience including union handling and settlements. I can sort out your problems amicably.
14. If you are keen please call me in Mobile No.+91 99411 53511
Hope for the best.
26th May 2017 From India, Madipakkam
You cannot reduce salary of workmen. Please read Payment of Wages Act. Reduction of salary is deduction of salary and you can deduct every thing which is allowed as deduction.
How would you like to reduce your own salary? I presume you are in HR.
28th May 2017 From India, Thane
However, the salary reduction cannnot be done unilaterally. You need concurrence of the concerned employees. You need to follow the rules laid down in industrial dispute act, standing orders, etc.
2nd June 2017 From India, Mumbai