Salary Reduction After Rejoining: Is It Possible and How to Handle It?

Dear All, Is it possible to show that an employee was working with a salary of Rs. 15,000, then resigned, and later rejoined with a salary of Rs. 6,500.00?

Yes, it is possible. For the company, it would be treated as new employment. Accordingly, the terms and conditions can be new or revised.

Please be careful while you do this. Although this would be treated as fresh employment, there may be some underlying issues. If the employee who rejoins with a lower salary raises a dispute with the labor department claiming coercion to resign and accept new employment, the situation could escalate. Management may face prosecution for unfair labor practices.

Regards,
Murali

To complete the employee's full and final settlement, and after 3 months, he could join as a new employee with a lower salary.

The decrement in salary could also be a result of a decrease in working hours. There could be a possibility that the employee was working full-time and was shifted to part-time work later on, which explains the decreased salary. It could also be a result of the decrease in job responsibilities.

If the said employee is working for you, then you may issue a new letter with reduced working hours. If he worked for someone else, seek a clear explanation for why it was done that way. Also, you can do a reference check regarding the same.

Hope this helps.

Regards,
Nisha

Employing someone for a lesser salary immediately after their last working day can be disputed at a later date. Hence, you need to give a break of at least 6 to 12 weeks and employ them with new terms and conditions and a new offer. Otherwise, for the purpose of avoiding payment of PF and statutory covers, the case may be manipulated. This type of act gives room for non-compliance and inspection, where you could end up with related problems. If the employer is capable of handling the issue at that time, you may leave the matter to him now.

Technically, it is possible for anybody to rejoin the same company. They may join at the same position, a higher position, the same department, or a different department with the same conditions of employment or with different conditions of employment (such as part-time, retainer, consultant basis, etc.). However, I feel your query can be best answered if you let us know the following:

1. What was their reason for leaving the job? Did they resign on their own, or were they asked to resign?

2. Have they been properly relieved, and has the full and final amount been credited to their bank account?

3. After how many days of a gap is this rejoining process happening?

4. What is the reason for them to rejoin or for your Management to consider their rejoining?

5. Did they work somewhere after leaving your concern?

6. Have they withdrawn or transferred their PF account to their earlier company where they were employed immediately before rejoining your concern?

7. Have they requested (in writing) your Management to give them an opportunity for reemployment in your concern?

Look forward to hearing from you.

Regards,
Rakesh Pd Srivastav

I would say no. It is not possible for someone to accept a job with a salary of Rs. 6,500 while previously drawing Rs. 15,000 or more, except under extreme conditions such as a recession. If he did that, there might be something definitely wrong done by him or the employer. Can you please share more details about it or what you know more about him?

Salary Reduction Concerns

Secondly, if someone is working and drawing Rs. 15,000 or more, and then rejoins after a few days or months of resignation, they can be offered a salary less than Rs. 15,000 but not as low as Rs. 6,500, which is even less than half of his previous earnings. This is not acceptable.

Aksh, is he your colleague, friend, or any personnel (employer)?

Regards

Though it is technically possible, there has to be a concrete reason behind it. You might need to provide an answer to this in an HR audit or during any government inspection.