Employer has been giving lesser salary than CTC promised - Is the employment contract valid and what are my options

T. Das
I have been working in a small company for the last six months. Although I received the salary, the amount credited was less than the CTC they offered me. I raised this issue and asked for salary slips, but they ignored providing the salary slip. Also, they mentioned that they are doing some deductions which they will give me back at the year-end. For this reason, my credited salary in the account was less than my offered CTC.

However, when I wrote a strong email demanding my payslips, after 7 months, they shared my payslips which clearly showed that the deductions were actually less, and they gave me less salary than they offered. Kindly note that I have also signed an employment agreement for a 3-year contract and a three-month notice period. Now based on the above scenario, I have the following questions:

1) Can I resign without serving a 3-month notice period?
2) Since they did not pay me the offered amount, does the employment contract still exist?
3) Can I claim the unpaid amount?
4) Since my payslips and offer letter do not match, how to deal with my future employer?
5) Can I take legal action against my employer for not providing payslips and giving less salary for the last 7 months?
umakanthan53
Dear Das,

The amounts shown under various heads and the aggregate in the CTC are only indications of all the expenses incurred by the employer towards the entire cost of employment and retention of the employee, and not the actuals payable at the end of the wage/salary period as per the contract of employment. Therefore, one cannot come to a hasty conclusion of less payment in breach of the contract based on C.T.C alone.

Some employers, knowingly or unknowingly, resort to the practice of holding a portion of the salary of the new employees every month and paying it back afterward to ensure their stay in the organization during the minimum agreed tenure. Certainly, it is illegal.

Unless you disclose certain vital employment particulars, such as the nature/status of your job, gross salary per month, actual amounts deducted, and their heads, one cannot suggest the right remedial action to be taken.
T. Das
Hi,

Thanks for your valuable suggestions. You are right... I should not make any hasty decisions based on the salary slip where some information may be hidden.

To have clarity, I have discussed with HR, and she has acknowledged that mistakenly they have issued less salary. However, I think they did it willfully. Does this prove that they have breached the contract? Based on this, can I resign immediately? Kindly suggest.
nathrao
No errors do take place. What to see for next month's salary. Get specific details of what mistake they made, which resulted in the salary being smaller than promised. What are the kinds of checks and balances to avoid such errors?

Please review the corrected text above. I have addressed the spelling, grammar, and formatting issues. Let me know if you need further assistance.
PRABHAT RANJAN MOHANTY
Mr. Das,

Now you need to discuss with HR what amount you would get monthly, the individual components, and the amount they have not paid you up to date. Many times, it happens that there are discrepancies, but you should estimate the receivables and their respective components with HR. As per your understanding, HR has informed you that there was a mistake in the calculation which needs to be resolved by discussing it with them and requesting it to be rectified in the next salary.

Insisting on resignation is not a solution at this point. Once you have the pay slip corrected, it will be beneficial for your future. You should also seek assistance from your department head to discuss the issue and then approach HR.
umakanthan53
Dear Das,

I think that you look askance at such an unbecoming behavior of the management and come to the stage of calling it quits. But two wrongs don't make a right. Follow the useful and practical advice tendered above by our learned friends and wait for some more time.
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