On what conditions the salary of the employees be reduced (Is this legal)? - CiteHR
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Hi Seniors, Just need you advice under this circumstances.
I work for a services based Engineering company having turnover of 25Cr with a headcount of 400 employees. We have been unable to make profits in the last 2 financial years. Also there is major fund flow issue in the organisation resulting in delay in salary for employees and clearing statuary dues. There are various measure that the company is taking to come out of the situation. One of such measures is reducing all department head salaries.
Please suggest on what conditions the salary of the employees be reduced (Is this legal)?. Salary is the market value of the employees and which they earn over the years with their performance and effort. Has the company this right to play with it?. Can salary be reduced to only few employees or across the organisation? . Is company liable to payback the deducted amount to employees if situation gets improve? What are the formalities to be done to do this exercise to safeguard the both employee and employer interest?
what does the act say on such a condition?
Community Prime Sponsors
FactoHR.com - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS.
Talentedge.com "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA.
Hi HRbuff ,
Salaries once mutually agreed to & mentioned in the Appointment Letter / Letter of Contract can not be unilaterally reduced by the employer without employee's consent.
The other queries raised by you are therefore irrelevant.
Anil Raina
Mob: 9810180148
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™