Can You Keep Your Salary and Benefits When Transferred to a New Department? Let's Discuss!

Transfer Within the Same Organization: Salary and Benefits

Suppose a person transfers from one department to another within the same organization. Can that person receive the same salary as they were receiving when asked to transfer to another department within the same organization? Secondly, is there any section that supports the idea that under labor law, the employee continues to enjoy the same or more benefits when the organization asks to transfer its employees? Please answer immediately with sections.

For example, a person has been working for an organization for the past 20 years. Now, the organization has decided to transfer the employee to another department within the same organization for a lesser salary. Under those circumstances, the employee refuses to accept that offer since the option given by the organization is a lower salary with no benefits that the employee enjoyed throughout the past 20 years.

Please provide specific laws where the employee can legally fight to claim the same or more salary and benefits through this offer.

Transfer of Employees: Legal Considerations

There is no specific law regarding the transfer of employees. Transfer is purely a managerial prerogative. As such, the employee is expected to obey the transfer order. However, when an employee is transferred to a department that offers a lesser salary and prospects, they can challenge it. An employer cannot reduce the salary of any employee without a valid reason. The only acceptable reason is as a punishment, which can only be awarded after giving the employee an opportunity to be heard in a domestic inquiry following the issuance of a show cause notice/charge sheet. If there are no such charges and no inquiry has been conducted, the employee is not obliged to accept the transfer order.

Standard Operating Procedures and Legal Framework

As already mentioned, there is no law that directly governs the transfer of employees. The Standard Operating Procedure (SOP) concerning transfers will be outlined in the Certified Standing Orders of the company. In the absence of standing orders, the appointment orders will govern the process. If the appointment order does not address transfers, it can be considered a change in service conditions. Any alteration in service conditions would necessitate a notice under Section 9A of the Industrial Disputes Act as well.

Patience and Gathering Opinions

One crucial point to consider is that you should not expect an immediate answer to all your questions. Different opinions will surface on the issue, and ultimately, you will gather various ideas, but patience is required. Therefore, I kindly request you to wait and consider other comments.

Employee Transfers and Salary Regulations

You can transfer employees from one department to other departments, provided the employees have the required work skills for the new department. However, you cannot reduce their salary and wages. Besides salary, some allowances are paid for certain departments but not for all, and these can be cut off upon transfer.

It's purely illegal to reduce salary and wages because these are agreed terms between the employees and employer. Transfers are not governed under any specific law, but conditions of services are part of the Industrial Disputes Act.