Is It Fair for My Company to Cut My Salary During Notice Period Without Reflecting It on Payslips?

Hi All, I have resigned from my job on February 28th, 2020, and was serving my 4-month notice period, which ends on June 30th, 2020. As you all know, the current ongoing crisis of Corona started in March, and the company decided to reduce the salaries of employees. As part of this reduction, they deducted a percentage of the monthly salaries based on certain criteria, and I fall under the 30% slot.

Salary Deduction During Notice Period

But the question is, I have already resigned and served my notice period, yet my company deducted my salary for the months of April, May, and June. Now, the payslips provided to me don't reflect the deduction, as they said the CTC was changed. Is it possible for a company to change the CTC when you are in the notice period, and nothing reflects in my offer letter? Can you please suggest what I should do?

Clause on Deferred Pay

One more clause they mentioned in the mail shared with everyone during this crisis:

Q: What happens if I leave employment before March 31st, 2021? Will I still get my deferred pay?

A: If any employee decides to leave our employment—willingly or terminated due to poor performance, etc.—before March 31st, 2021, they will not be eligible to receive any of their reduced pay as part of their Full & Final settlement.

Salary Deduction During Notice Period Due to COVID-19

It is presumed that you continued in service until 30th June 2020. Irrespective of having served the required period of notice, you are still in service until relieved on 31st June 2010. Meanwhile, the company announced a specified percentage of salary cut depending upon grades, presumably from 1st April 2020, due to the prevailing COVID-19 situation. This ruling has been applied in your case too, and hence it is in order.

Naturally, if you had left the service before 31st March 2020, your salary would remain intact as the salary cut came into force from 1st April 2020. Where is the question of deferred wages in that case?

Communication and Authorization for Salary Cuts

In such circumstances, the company ought to have issued a circular/mail to all employees, making known its intention to cut salary by a certain percentage depending on grades due to the adverse business impact arising out of the COVID-19 situation and the compelling reason to do so. In such an event, a standard format/authorization should be designed and signed by every employee before proceeding with the salary cut.

Negotiations with Unionized Employees

If the salary cut involves workmen (bargainable employees)/unionized cadre, the management used to have a bipartite negotiation with the union/workmen representative, and an MOU (with clear-cut terms and conditions as to how much deduction, from when, and for how long, etc.) being signed before proceeding further.

When such an arrangement (either issuance of a circular or an MOU as the case may be) has been made, it is applicable to employees who served notice to employers as an implied condition of service.

Regards

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