Few Months before I've attended an interview in a mumbai based company and got selected for Associate Frontend engineer role with 2LPA package and 1 years Service agreement.

I rejected that offer by stating I don't feel comfortable with the salary and the industry (Medical Billing).

Later MD of that company called me and gave me an offer to work in his brother's company which is located in Malasiya for 6.3LPA and 2 years service agreement.

I agreed to work with that Malasiyan start-up upon these conditions, 1.) I wouldn't be let to work on MD's company as I clearly stated I'm not comfortable with the salary and Industry.
2.) I'm accepting this offer and three year service agreement only because of Salary (6.3LPA).

Two months later, all of a sudden, Management decided to move me from the Malasiyan startup to their Company which is operating in Mumbai (No prior notice has been given ).

They stated, My performance is slow and I can continue to work in Their company, and they also didn't changed the Service agreement and salary according to their company.

After working for one and half months in their company, yesterday they said they're reducing my salary to 2LPA because they are not satisfied with my performance.

My query is, Do I have the right to ask for relieving me from that company because they changed my salary as well as the industry I work for, without paying Bond Amount?.

I accepted to work for their company because by the time when they told me I'm not working for Malasiyan startup anymore, they didn't mention anything about reducing salary. But now they are Reducing it.

I require some legal advice on this issue.

From India, Chennai
Dinesh Divekar
Business Mentor, Consultant And Trainer
Sr.manager - Hr&admin
Labour Laws & Ir.

Dinesh Divekar

Dear member,

Your employers are crafty and know how to advance their interests in an unemotional manner. To come out of their clutches, I recommend you have a one-on-one meeting and understand why the salary has been reduced to less than a third of what you were getting. The other side may become unreasonable and may give flimsy excuses but do not lose your cool. Whatever the provocation may be, remain polite.

Nevertheless, tell them firmly that you cannot meet your family expenses with the salary given. Therefore, rather than treating me as a burden or a liability, the right course of action is amicable separation.

When the employee underperforms, he/she is just told to put in papers. More than two salary reduction is unheard of. Probably the other side you to take initiate for separation. Hence could be a ploy for salary reduction.

Let us see whether this formula works. If it does not work, then we will see what to do further


Dinesh Divekar

From India, Bangalore


Based on the information provided by you it seems both companies are different entities. Please check your initial appointment whether any clause is added in the letter like " Company reserves the right to transfer the employee to any other branch / group companies " If so they will defend themselves saying as per Appointment Order they have the right to transfer. But transferring without information and reducing salary without getting any consent from employee is not right legally.

From India, Madras

Every Organization has a defied criteria for the transfer of employees (Internal Transfer), and it also varies from individual to individual. pls note that Employer may change an employee's job duties, schedule or work location without the employee's consent.
As you mentioned that your employer Transferred you 1 Group to another company with reducing salary without your consent. Does the employer have the Right???? Legally No
If the performance of any employee is not satisfactory then employer have to issue him warning letter and follow each and everything step by step for his termination.
Discuss with HR/Management for same and if do not agree then you can challenge in court.

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