Labour Law & Hr Consultant
Hr Manager
Bhartiya Akhil

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I am working with the Hospitality Industry. due to pandemic situation company is facing some financial crises.

Company decided for deduction of salary every month till the time company come back in Normal condition.

for that they have get the signed consent letter mentioning voluntary deduction of salary to help the company..... all the employees have signed it as we all wanted to existence of the company so that our jobs will be saved.

But just after 1 month Company has terminated 50% employees with mentioning the reason of termination.

and at the time of full and final settlement they still providing deducted salaries.

Please, advice what can be do in this scenario.

Consent letter which is submitted through mail can be withdrawal as employees has voluntary was doing that.

Kindly, advice that will be help for lots of employees.


From India, Delhi

Attached Files
File Type: docx Consent Letter.docx (16.2 KB, 117 views)

Dear Hemlata,
The narrative of your post compels me to think that all the employees have simply walked into the trap of the Management by submitting individual undertakings to work at reduced wages/salary as dictated by the Management and the format of the consent letter proves it. If it is genuinely voluntary in order to save the organization and the employment of all the employees, it can be tolerated to some extent as it is only a stop-gap arrangement. But the next move of the Management sending 50% of the employees out of employment suddenly during the following month that too with settlement of their terminal benefits at the reduced rate of salary is totally illegal and unethical as well.
In this situation, you have to act collectively against the Management and consider the following immediate actions to be taken:
1) All the terminated employees issue one month's notice to the Management informing them of their intention to make a complaint under the Disaster Management Act,2005 to the State Authority for violation of the Lock down instructions issued by the Central Govt.
2)Those terminated employees belonging to the cadre of workman have to raise individual disputes u/s 2-A(1) of the ID Act,1947 against their illegal termination before the Conciliation Officer for the area.
3) Those who are still in service have to write back to the Management withdrawing their consent letters for reduced wages for it was obtained under coercion and they should be paid salary at the previous rates.
Better make a joint complaint to your State Labor Commissioner first.

From India, Salem
Dear Hemlata,
On first instance all the employees terminated send an application to The High Court of state jurisdiction & to the Supreme Court too.
Is there any mail from HR to employee to submit the consent letter?
Making settlement on reduced rate of Basic is a violation & the consent letter would not give any benefit to employer. Ask the co-employees not to receive the F&F settlement for the time being and bring it to the notice of State Labor Commissioner.

From India, Mumbai
Dear Umakanthan.M,
Sir, whiling agreeing with you, I would suggest to write (through email: ) to the Nodal officer at the level of the Ministry to deal with “Employee Grievances with respect to COVID-19, Govt. of India" and also to other authorities so that the justice would be faster.
Akhil Bhartiya

From India, Mumbai
Akhil Bhartiya.
You have addressed your post wrongly. You should have addressed to Hemlata Verma, Delhi
who had initiated this thread.
Umakanthan sir, because of his vast experience in the field, made a detailed suggestion to the poster.

From India, Aizawl
I have seen the profile of Umakanthan Sir. I am aware that he is quite senior and knowledgeable person. I appreciated his post and very respectfully though it is not mentioned suggested further to his advise.
I may be wrong in putting my words or I may be having less experience on this platform therefore some thing went wrong, for which I apologise.

From India, Mumbai
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