Benefits Revision

Hi there, i just wanted to ask that can a company reduce the benefits (Provident Fund, Health Benefits, Gratuity Amount etc.) of its employees which were agreed upon at the time of their employment and that to without giving a proper notice ?

dear
ofcourse your question is not clear .you donot want to share the complete story
and wants to know solution.from your question we only can say company should not reduce benefits.
tks
j s malik

Dear,
"NO"
Regards,
R.N.Khola


(Labour Law & Legal Consultants)
09810405361

Yes,
Statutory benifits can not be reduced once it is provided and these benifits depend on Salary of employee.
Salary of an employee can be reduced accordengly benifits.
There are some benifits called extended benifits, these can be withdrawn at any time by just informing.
Example for Extended benifits : Shuttle service, Medical insurance ....etc.
Som

PF, Gratuity, Medical are the statutory benefits that each employee should be entitled. These are the standard benefits the employer gives to employees. They cannot be modified or changed

I agree with Suresh & Somasekhar, Benefits envisaged by statutory regulations, cant be reduced. Organisations can reduc the fringe benefits such as mobile, shuttle, etc.

Pls note the benefits can be reduced unless and until you are not covered under the act of ESI or PF or other statutory compliant law. If you dont fail within the purview then company can reduce your salary. Its only applicable to employees under staff category ..Normally people working in software, airlines, MNCs are getting handsome salaries hence in their case certainly the salaries can be reduced for people who are working as AM, DM, Managers, Sr. Mgrs, Directors etc..

You seem to be in a real fix.
Morally, this shouldn't be done but there are many companies which are doing it taking slowdown as an excuse.
You need to understand that most of these benefits are fraction percentages of the basic salary. So , in stead of reducing these benefits, reduce the basic salary ( if you must); these cost will automatically be reduced.
However, you must clearly communicate this to your employees before you proceed to do this.
Regards
Team GroupHR
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Dear All, Thank you for your replies, although i do agree with the point where economic slow down is made an excuse to reduce benefits such as medical and gratuity, in my particular query both of these were drastically reduced...obviously attracting: frustation & criticism...i guess its wrongful on the companies part..