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If the worker does not accept reduction in salary, the company can continue to pay what it earns or it can terminate the contract, but if the second option is made it is a termination without just cause, since the worker is not obliged to accept the rebate of salary. And in this way one is obliged to compensate the worker according to the type of contract.
Let's briefly answer the following concern. Is it possible to agree with the employee a change in his basic salary and lower it, since his performance was not as expected and therefore, the company should remove it from the current position?
There is a misinformation about the impossibility of lowering the salary to the worker. It is said that the salary once lowered can never be reduced and this is inaccurate. Let's see.
The Labor Code defines a minimum wage according to days and hours worked. For those days and hours worked there can not be a salary lower than that established in the law. From then on it is a freedom on the part of the parties to define the remuneration.
If I have a worker who has a salary of 2 million pesos. It has a schedule from Monday to Friday from 8 am to 6 pm. I tell him: "the situation is very difficult and I simply can not pay the two million. We lower the salary to $ 1,500,000 or terminate the contract . "
If it is decided to lower the salary so that this is legal, the free consent of the worker must exist. It means that the worker in a free and spontaneous way without vices in the consent, according to the Civil Code, without only or deception, accepts the reduction of his salary in writing. Here a record is made where the worker and employer agree that the salary is lowered.
The foregoing is legal because the worker accepted freely and spontaneously. Second, there is no impact on the minimum wage because, according to the time he works, $ 1,500,000 covers the minimum wage in Colombia.
Otherwise it is that you have an employee who works 48 hours a week and earns the minimum wage and intends to reduce it. That's not allowed. That agreement is ineffective.
Now, if the worker does not accept the reduction, you as a company can continue paying the two million or can terminate the contract, but if I do it is a termination without just cause because the worker is not required to accept the salary reduction . And in this way I am obliged to compensate the worker according to the type of contract.

From India, Mumbai
Dear Nishant, Can you please explain the above proposition in the Indian context?
From India, Salem
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