Can Basic Salary Be Reduced?

Dear HR Friends,

Our company is planning to squeeze working days from 6 to 5. We are planning to keep Saturday and Sunday as a weekly off. As the employees would be giving lesser time to office, so can we reduce their basic salaries? If yes, what will be ration then? Pls help

Regards,

Dev

Dear Dev,
Doest it mean that your employees are ready to reduce their current earnings ???
Prashant
09011070437

No you can not reduce the base salary, under some judgement given by the court. sorry i couldnt recall the case. but soon come back to you with the case.

No you can not reduce the base salary of an employee. This is based on one of the judgement given by the court. Sorry couldn't recall the case but i will come back to you soon with details of that case.
But you should consult to legal advisors of your company, there could be some circumventing solutions to it.

You cannot reduce the basic salary of any employee. Please understand that all the statutory deductions like PF, gratuity, superannuation are based on it.The quantum of deduction cannot come down from a given level.

hi,
see friend according to the minimum wages act which is decided by the state you must pay more amount.
so it is not necessary that u did your working day 6 to 5 or 6 to 3.
necessaty is that u must follow the minimum wages act rule.
BR/
Sudhir

Thanks to all of you for responding.
Can Anyone out here give me some reference like any court decision or definition given by any legal authority in this reference?
Pls reply
Regards,
Dev

No, I don't think it is a good idea to reduce the workload and reduce the package of the employees, instead reduce the manpower and think of other ways of generating revenues for the company.
Khan/ KCS Recruitments.

Dear Dev
First question to be answered is that how company is going to sabstantiate squeezing of working days from 6 to 5. Whether it would come under 'Lay OFF' or 'Block Closer'. If company declares it only a normal reduction of working hours / days then it has got no right to deduct from employee's basic salary. As you have mentioned in your post that it would be a weekly off then there is no chance of reducing salary.
While in case of Lay off & Block closer it may go for deducting of salary. But in both the cases you must take care of relevant Laws & Rules defined under ID Act.
Regards
Anshu

Hi
if your company is paying PF for all employees, then it cannot be possible, if it is not, then it can be possible subject to employee's agreement.
hope this clarifiies
Rgds
Venkat