Can a Company Adjust Salary When an Employee Chooses Fewer Work Hours? Seeking Compliance Insights

If an employee has joined the company for a 12-hour duty and is receiving a salary of 15,000/-, but then wants to switch to an 8-hour duty with a salary of 12,000/-, can the company reduce his salary structure accordingly to comply with regulations?

Thank you.

Any contract of employment providing for a 12-hour-a-day duty is void as it violates the statutory norm of working hours. Therefore, the reduction of the already agreed salary in proportion to the reduced working hours, even with the unequivocal consent of the employee, is still questionable. However, if it does not fall below the statutory rates of minimum wages, if any, fixed for that employment, such an arrangement would be considered acceptable.

Thank you.

Legal Implications of Duty Hours and Salary Reduction

There cannot be a regular 12-hour duty every working day; it is against the law. Normal duty hours are 8 per day. Therefore, there cannot be a reduction in pay by Rs. 3000/- for conforming to the law. In most places, the minimum wages would be more than Rs. 12,000 for any skilled type of job. Once an employee starts regularly receiving Rs. 15,000 per month, it cannot be suddenly reduced to Rs. 12,000/-; it would be an illegal change in the eyes of the law. If the matter gets reported to the Labour Department, the company would be really hard-pressed to defend the matter. Such unilateral action should be protested and challenged.