Dear HR team, Kindly clarify can we reduce the employee salary by 18(1) wage settlement.
Employee Experience : Year 5
Salary Rs 25000/-per Month before settlement.
After Rs 23000/- Per month after settlement
The reason some education proof not produced.
Is it possible to reduce salary?
Rajesh
From India, Chennai
Employee Experience : Year 5
Salary Rs 25000/-per Month before settlement.
After Rs 23000/- Per month after settlement
The reason some education proof not produced.
Is it possible to reduce salary?
Rajesh
From India, Chennai
Reduction of salary by way of wage settlement is unheard of, though it is possible. It is also stated that for not producing education proof the salary is reduced. So I presume the wage reduction is not based on the wage settlement but because the employee has not produced required educational proof so he is getting fixed on a lower salary than what is provided as corresponding salary after wage revision, am I correct?.
If the employee has been continuously drawing the higher pay and you want to reduce it, the Principles of Natural Justice would apply and there cannot be any abrupt reduction in salary. You need to give notice as to why the salary should not be reduced and consider the explanation, if any, before reducing the pay.
How you are linking the settlement under Section 18(1) to wage reduction also needs clarity?
From India, Mumbai
1530If the employee has been continuously drawing the higher pay and you want to reduce it, the Principles of Natural Justice would apply and there cannot be any abrupt reduction in salary. You need to give notice as to why the salary should not be reduced and consider the explanation, if any, before reducing the pay.
How you are linking the settlement under Section 18(1) to wage reduction also needs clarity?
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary-Note.doc
SALARY SHEET CALCULATION.xls