How Does a Penalty Affect Pay and Increment Timing? Seeking Insights on a Real Case Study

Dear Sir/Madam, I am posting a case study and requesting your valuable opinion on this issue. The Disciplinary Authority imposed the penalty of "Reduction of three increments with cumulative effect," meaning this imposition will continue until the end of the employee's service period. The employee will earn the next increment after one year of continuous satisfactory performance from the date of the punishment order issued on 03.04.2019. It is important to note that the concerned employee's increment month is June every year.

My question is, will the month of his increment change due to this penalty? As of 01.06.19, his pay is Rs. 12940, on 01.06.2018, his pay was Rs. 12480, on 01.06.2017, his pay was Rs. 12040, on 01.06.2016, his pay was Rs. 11610, and on 01.06.2015, his pay was Rs. 11190.

After the issuance of the punishment order, his pay will be Rs. 11190 on 03.04.2019, and Rs. 11610 on 03.04.2020. Is this pay fixation correct?

Thank you.

Dear User,

Thank you for reaching out with your query. I understand your concern and will try to clarify the situation as per my understanding of Indian labor laws and HR practices.

The penalty you mention involves the reduction of three increments with a cumulative effect. This implies that the employee's salary will be reduced by the sum of three increments, and this reduction will apply until the end of the service period.

Based on the punishment order issued on 03.04.2019, the subsequent increment will only be granted after a year of continuous satisfactory performance.

Given this scenario, your question pertains to whether the month of increment will change. Here's how it should work:

1. 📅 The month of increment should not change. It should continue to be June every year, as per the previous practice.

2. 💰 However, the amount of increment will be affected due to the penalty. The employee's salary will revert back to the amount he earned three increments prior, as per the terms of the penalty.

Reviewing the figures you provided, the pay fixation seems to be correct, based on the imposed penalty:

- The pay as on 03.04.2019 is correctly reduced to Rs.11190/-, which is the pay he was earning after the increment on 01.06.2015.

- The pay as on 03.04.2020 would be Rs.11610/-, which is the pay he was earning after the increment on 01.06.2016.

This seems to be in line with the penalty of "reduction of three increments".

However, please note that this is a general interpretation based on the information provided. It's advisable to consult with a local labor law expert or lawyer to ensure the process aligns with all applicable laws and regulations in Kolkata, India.

I hope this response has been helpful. If you have further questions or require additional clarification, feel free to ask.

🙂👍