CTC Advertised-but Not Paid

sas1234
A central Govt PSU (Public Sector Unit) advertised certain CTC in the advertisement. (Approx Rs 5 lakhs per annum)

In the appointment order also, the same components of salary like performance related pay, project linked allowance etc are mentioned (without mentioning the rupees) followed by a phrase "will be admissible as per rules". Only the Basic pay is mentioned in rupees.

After joining, the company does not pay many components of salary promised in the advertisement and appointment order. As a result the take home salary is only half the CTC promised in the advertisement.

When some employees raised the issue, the employees were transferred to remote places, harassed and even dismissed.

Some employees filed court cases and the company answered

1.CTC was approximate,
2.Some allowances were announced but the final implementation did not happen,
3.It is mentioned in the appointment order "as per rules". So, all payments will happen only as per rule,
4.There was no specific promise to pay this much in the appointment order,
5.You accepted and joined,
6.You will be paid salary what others are getting

A. Whether the company is justified in falsely advertising high CTC to lure employees?
B. What is the remedy for the employees who were cheated?
C. Will it be worthwhile to fight it in the court?
D. What are the options available for the employees? (other than leaving)
E. To whom to make a complaint?
nathrao
People should not mistake CTC and salary in hand.
Here ad says CTC is RsX,What are the components of this CTC.
Some of it like deductions for gratuity do not affect the take home pay of employee.
Some allowance mentioned as part of CTC may not be payable to all employees or dependent on certain conditions.
Off course it is not good that any employer gives false hopes by showing higher CTC,they should be truthful about what they are going to pay.
Company will obviously take all legal defences but a good employer sees the moral aspect also.
You can probably join hands with other employees and write to controlling Ministry of the PSU-highlighting harassment,misguiding CTC and ask them to rectify these wrong doings.
Legal battle is a time consuming event and one should think whether he should move on or contest legally and await justice.
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