Can My Employer Legally Cut My Salary After a Freeze? Seeking Advice on Next Steps

Dear All,

I have been working in a Medical College as an Executive Secretary for the past 14 years, accumulating a total of 40 years of experience. In 2015, my pay was Rs.55,000 when the COO verbally ordered a freeze on my pay, stating that there would be no raise. However, in 2016, the CAO handled my pay, citing a financial crisis, and reduced it to Rs.40,000—a straight cut of Rs.15,000 in pay that was already frozen. During the same period, some employees received increments and raises at their discretion without official orders.

After 11 months at Rs.40,000, my pay was restored to Rs.55,000 in 2017. However, as of January 1, 2018, all non-teaching employees (333 in total) except for me, were given a 10-20% rise in salary. I have requested the COO to refund the Rs.15,000 deducted per month as I have not been considered for a hike.

My question is, since my pay was frozen in 2015, can the management legally reduce my pay from Rs.55,000 to Rs.40,000 again? What recourse can I pursue?

Please advise me.

Thank you,
Jagannadham Rachakonda
Executive Secretary/Senior Manager

Dear Mr. Jagannadham Rachakonda,

Going by the sequence of events that you have mentioned, there is room to believe that your management wishes you to "hang up your boots." Since you have served for 14 long years with a total length of service lasting close to 40 years, they have not told you directly that you are "over the hill" but sent a message indirectly by reducing your salary. However, you dug your heels in and continued. Now in 2018, for the second time, your management has sent a signal that you are persona non grata by not giving any hike in salary.

Executive Secretaries and Influence

Executive Secretaries are expected to be influential persons as they work directly under the top bosses. Even senior managers respect them because of their position. In your case, you could be exerting influence on the top boss, but this has not stopped them from belittling you!

Options Moving Forward

Now you have two options. One is to keep working irrespective of the remuneration that your management gives. This is the pre-dusk era of your career; therefore, you may continue to lay your hand on whatever you get! The second one is to tender resignation to avoid further embarrassment of yourself. The choice is yours!

Thanks,

Dinesh Divekar

Dear Mr. Dinesh, thank you very much for your prompt reply. Of course, it almost indicates the same as what you said. I will try to follow your advice sincerely.

Clarification on Salary Freeze and Pay Cuts

Could you please clarify my point: Is it justified in any way that once the salary is frozen (for me, freeze means from both sides - no more, no less - it is seized at that stage)? When they mentioned financial difficulty (in fact, they failed to manage their resources properly), they chose 13 people and reduced 20% to 12 out of 13, resulting in a straight cut of 15,125/- from me, making it 40,000/- from 55,125/-. (20% works out to 11,000/- only). Isn't this discriminatory on their part? It seems like a double punishment for being sincere.

Simultaneous Wage Freeze and Pay Cuts

If possible, could you enlighten me on whether wage freeze and pay cuts in a discriminatory manner can happen simultaneously? Thank you once again for your kind advice.

Regards, Jagannadham Rachakonda
Executive Secretary / Sr. Manager