Demoted and Facing Pay Cut: Is This HR Practice Fair and What Should I Do Next?

Dear Sir, I was recently demoted from AGM to Senior Manager on 3rd March 2020 by the management on what I believe were flimsy grounds. In the process, they placed me at the initial scale of the Senior Manager position, with a basic salary of Rs. 25,500/-, whereas when I was promoted in October 2019, I was drawing a basic salary of Rs. 39,000/-. I am seeking clarification on whether this action aligns with HR rules and regulations.

Moreover, considering that my terminal benefits such as gratuity, incentives, HRA, and other allowances are tied to my basic pay, this situation is causing me significant financial hardship. I would appreciate any guidance or advice on the appropriate course of action to take next.

Thank you for your assistance.

Regards,

Dear friend,

Since you were promoted in October 2019 only as AGM from the post of Senior Manager, my opinion is that your pay should have been fixed on the last drawn basic pay at the scale of S.M. on your demotion as S.M.

Demotion and Salary Restoration

Even if you were on probation for a promotion and your employer took an arbitrary decision to demote you to your pre-promoted position, reducing your basic salary that you were drawing at the time of such promotion ought to be restored to remain in alignment with the duties, responsibilities, and role allotted to you in your pre-promoted position. Failing which, the arbitrary act of demotion amounts to an unlawful, unethical, and condemnable act in a civilized society.

Demotion as a Disciplinary Action

Demotion in any case is an outcome of disciplinary action for an act of misconduct or unacceptable behavior. Seek remedy.

Harsh K Sharan, Kritarth Team, 10.5.20

Yes, fixing the pay at the starting stage is wrong unless, of course, the order imposing punishment mandates so.

I agree with the members in the discussion here. The salary should have been reduced to what you were drawing in October 2019 because, after all, it is because you had been performing well that you got promoted from that level. So reducing your salary below this level would be unfair and against the management's assessment of your performance when you were promoted in October 2019.

Hi, I am a state government employee of Uttar Pradesh. I have been demoted from Senior Assistant to Junior Assistant as a punishment. My basic pay was Rs. 42,820 before the demotion, and now my present pay after the demotion has been fixed at Rs. 21,700. I am confused about what is correct and what my pay should have been fixed at. Please clarify this for me. Thank you.