Salary reduction on company change - Can you explain if the salary reduction was legal?

NeedHelp123
I had changed my job role and company in 2002. My salary was reduced by a great extent. Also the basic salary was reduced by almost 50 percent. I wanted the job because it was in the area of my liking. Secondly, I had left my existing job before I could get a new job and stayed out of the job for 6 months. Can you explain if the salary reduction was legal? This reduction continued later and few increments were not given to me.
umakanthan53
Leaving the existing job for whatever reason is an individual's discretion. Similarly, after some gap, accepting a job in a place of
his/her liking is the individuals choice.
Therefore, such a choice should have been exercised only after verifying matters like the new organization's profile, future prospects like promotional avenues, initial compensation package, increments, fringe benefits etc. How can the poster complain about reduced salary than that of his/her previous job after accepting the offer and joining?
Does he mean to convey nothing was offered or the actual salary is less than the offer?
NeedHelp123
Thanks Mr Umakanthan. Appreciate your quick response. Yes, many people do not have knowledge about these aspects. This mostly happened with many in first few job changes, especially in past few decades where things were not online and person's knowledge used to be limited to his or her field of expertise. Well the question was for the sake of knowledge, as after many years, we won't go back and change things. Secondly, people don't understand what difference does it make if the basic is reduced to half and other benefits are added to make up similar compensation structure. I am not an HR expert. But got this details noticed and discussed after long when someone pointed out the difference.
umakanthan53
Dear friend,
Appreciate your quick and positive rejoinder. Now, let me come direct to your queries :
1) The compensation package would have been conveyed to you in the offer letter. Perhaps it would have been in CTC format. After accepting the offer and joining the post, you cannot complain about the change in the salary structure in comparison to your previous job's pay structure.
2) Basic pay is the most important component in salary structure as all other indirect monetary benefits are calculated normally on the basis of the basic. In case of termination of employment, for example, terminal benefits including gratuity vary according to the last drawn basic pay.
3) Now a days, most of the employers determine employee compensation in CTC method which is a bit baffling to a job aspirant and certainly requires both insight and foresight while reading it.
NeedHelp123
I would like to add something more here. Many managers learnt from college or their seniors. And they themselves do not have any exposure or ideas to lead. They work based on their experience and knowledge that could have been useful in past centuries. Unfortunately, the same people are sitting in position of deciding the compensation and they screw up the candidates future and life by cutting down the compensation. He not only have to survive on half salary, give up his pension and other benefits, but end up with some idiots who will teach him things that he had came to change. What a pity. And government thinks that they are doing great job by exploiting him and letting some idiots in government do it. This is very unfortunate situation. If person thinks he has abilities for better job, he should be given proper compensation and opportunities to let him make dreams true. That is the reason he is working in private sector and not in Government job. Unfortunately, people are not trained to tell their managers and teachers that they are outdated and no more useful.
Nagarkar Vinayak L
Dear disturbed colleague,
Generally people change job inter alia, for better compensation and benefits. Just as offering lower salary/basic than previously earned by any organisation is in bad taste, ( legality is debatable), same way your complaining about it after knowing it fully well and accepting it before joining. The fault is equally yours too and I share views expressed by Mr Umakanthan.
I think your generalized observations about seniors not knowing anything and follow old fashioned style of managing are uncalled for in the context.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
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