Employee Service Agreement - Management decided to move me from the Malasiyan startup to their Company which is operating in Mumba

Few months before, I attended an interview at a Mumbai-based company and got selected for the Associate Frontend Engineer role with a 2LPA package and a 1-year service agreement.

I rejected that offer by stating I don't feel comfortable with the salary and the industry (Medical Billing). Later, the MD of that company called me and offered me a position in his brother's company in Malaysia with a salary of 6.3LPA and a 2-year service agreement.

I agreed to work with the Malaysian startup under the conditions that I wouldn't have to work at the MD's company due to my salary and industry concerns. Two months later, the management suddenly decided to transfer me from the Malaysian startup to their Mumbai-based company without prior notice.

They claimed that my performance was slow and insisted that I continue working for them without changing the service agreement or salary.

After working for one and a half months in their company, they informed me yesterday that they are reducing my salary to 2LPA because they are not satisfied with my performance.

My query is, do I have the right to request relieving from the company without paying the bond amount since they changed my salary and the industry I work for without notice?

I accepted the job offer based on working for their company and not the Malaysian startup, and they did not mention any salary reduction at that time. I am seeking legal advice on this issue.

Dear member,

Your employers are crafty and know how to advance their interests in an unemotional manner. To come out of their clutches, I recommend you have a one-on-one meeting and understand why the salary has been reduced to less than a third of what you were getting. The other side may become unreasonable and may give flimsy excuses, but do not lose your cool. Whatever the provocation may be, remain polite.

Nevertheless, tell them firmly that you cannot meet your family expenses with the salary given. Therefore, rather than treating me as a burden or a liability, the right course of action is amicable separation.

When the employee underperforms, he/she is just told to put in papers. More than two salary reductions are unheard of. Probably, the other side wants you to take the initiative for separation. Hence, it could be a ploy for salary reduction.

Let us see whether this formula works. If it does not work, then we will see what to do further.

Thanks,

Dinesh Divekar

Hi,

Based on the information provided by you, it seems both companies are different entities. Please check your initial appointment to see if any clause is added in the letter such as "Company reserves the right to transfer the employee to any other branch/group companies." If so, they may defend themselves by stating that according to the Appointment Order, they have the right to transfer employees. However, transferring an employee without information and reducing their salary without obtaining consent is not legally right.

Hello,

Every organization has a defined criteria for the transfer of employees (Internal Transfer), and it also varies from individual to individual. Please note that an employer may change an employee's job duties, schedule, or work location without the employee's consent.

As you mentioned that your employer transferred you from one group to another company with a reduction in salary without your consent. Does the employer have the right? Legally, no.

If the performance of any employee is not satisfactory, then the employer has to issue a warning letter and follow each step carefully for the termination process.

Discuss this matter with HR/Management, and if you do not agree, you can challenge it in court.