Salary Structure Changes: What Are the Legal Implications and Can We Have Multiple Levels?

1. What are the legal implications if we are changing the salary structure for the employees?

2. Can a company have multiple salary structures for employees (different basic pay for different employee levels)?

Regards,
Naresh

Dear Naresh,

You are advised to go through Section 9A of the Industrial Disputes Act, 1947 before effecting any change. In the future, you may have multiple salary structures for different employees, but this should not result in resentment among the employees.

Regards,
R.N.Khola

(Labour Law & Legal Consultants)
09810405361

Dear,

It depends on the work profile, whether it is blue-collared or white-collared. If it is white-collared, you can have different scales.

With Regards

V.Sounder Rajan

Email: rajanassociates@eth.net

Office: 044-42620864, 044-55874684