Dinesh Divekar
Business Mentor, Consultant And Trainer
Vanisree V
Hr Manager

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We are a private IT company with 24/7 shift. An employee is taking continuous emergency leaves without enough time for us to make shift adjustments. Most of the leaves are medical and the company is well aware that the employee have enough contacts to make fake medical certificates. The management would like to demote this employee rather than terminating as a large amount of money was spend on training her. I would like to know if its legal to demote an employee with salary reduction.
From India, Kochi
Dear Vanisree,
The definition of demotion is "act of lowering in rank or position". Legally, you cannot lower employee's rank or position at your will. It may be be noted that the "demotion" is a punishment and to award it, your company needs to conduct a domestic enquiry. In the domestic enquiry, the misconduct must be proved.
As of now, I recommend you issuing the employee the warning letter for her unauthorised absence. In case if she absents again, give a show cause notice. If employee still absents, you order the domestic enquiry. Take a decision afterwards.
If you are from the state of Kerala where labour unions are active or hyperactive. Therefore, it is better to follow a legal procedure to avoid the problems in the future.
Thanks,
Dinesh Divekar

From India, Bangalore
Thank you for your valuable suggestion.
From India, Kochi
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