Can HR Change Your Salary Structure Without Notice? What Should You Do If It Happens?

I have joined an IT company by signing the offer-cum-appointment letter with a written monthly salary structure. However, after 5 months, HR suddenly changed my salary structure, including HRA and BASIC, without any prior notification or my acceptance. Does HR have the power to alter the salary structure of an employee? If YES, shouldn't it be necessary to mention this in the appointment/offer letter that was handed over to me at the time of joining? If NO, what should an employee do?

Thanks.

Industrial Disputes Act prohibits any change of service conditions for employees without notice and mutual agreement. This Act will be applicable to you if you fall within the category of 'workman'.

HR has to abide by the law of the land and cannot act arbitrarily. You can initially raise the dispute before the management by sending a protest letter. Make sure you have proper acknowledgment of the said letter for future reference, if required.

Salary structures, especially the basic salary, are not changed unless there is a strategic reason and the employees have been included in the decision-making process. Therefore, you should inquire with your HR department as to why the change was implemented.

Equally important is assessing whether the modification will have any adverse effects on you in both the short and long term.

Ms. Banerjee and others have amply clarified the rule position. It is essential to consider the impact of the change, both in the short term and the long term, before taking action. Additionally, seek clarification from HR on the effects on PF contribution, gratuity, and the reasons for the change.

Best Wishes, Col. Rathi

Happy New Year 2017 to All Cite HR Members and Team Leaders

Regarding HR changing the salary structure, sometimes HR will change or modify the allowances due to alterations in PF, ESI, IT Acts, etc., to safeguard the interests of the company and the employees concerned. HR also specifies in appointment orders that the management may adjust or merge Basic, HRA, etc., to accommodate such changes in any Act. However, they will inform employees beforehand to prevent any later misunderstandings.

Therefore, as advised by seniors, please contact HR for any changes if it has resulted in any losses for the employee.

Regards

It is only mentioned that the structure has been changed. If your gross or CTC and basic salary are maintained, you need not worry. Also, your tax liability should not be increased.

Yes, under section 9A of the ID Act, 21 days' prior notice should have been given. But if the above points are true in your case, don't bother too much about these legalities.