Decreasing Salary After Demotion

Dear All,
if an employee got demotion becuase of his poor performance,bad behaviour against employees, what policy we should follow incase of his salary
whether to put as it is or
decrease
suggestions please.
Regards,
S.N.Rahaman

Hi,
Demotion is the worst thing & do not demote the employee. If he is not performing well so find out the reason if it is because of lack of knowledge so train him to enhance his skill & if it is because of behaviour give him training for enhancement of interpersonal skill. Demotion would be the worst thing to do & every company should avoid this is spoils the reputation of co. as well. A demotion would completely frustrate the employee his performance would go even worst & he would leave the co. I would make a bad impression in front of other employees as well & they would feel insecure. Today such word has no place in the organization- demotion, fire , etc. The organization should have the capability to take the quality work from the employee & if it doesn't happen it means org. is not using its resources properly.
Regards

Hi,
i am Very impressed by Durga2 comments actually all organisation should adopt this suggestions and erode the maxim demotion in our organisation. but to answer your question when you demote your employee basicaly you are not allowed to reduce his/her salary you can only remove other benefits which are not legally binding. i dont how your legal systems in your country operates but thats the principal in my country.
regards,

Dear Rehman,
We have to abide with the provisions of Payment of Wages Act 1936. My general knowledge says that we cannot reduce Basic + DA of employee. Other allowances if any can be reduced. Neither we are permitted to pay below Minimum Wages.
Yet you can take advice from legal experts.
Thanks,
Dinesh V Divekar

Hi,
I agree with earlier opinion, but the answer of the question is: once you raised the Basic, can't be reduce in any case, but you can withdraw the facilities, reimbursement and other facilities. Legally it would not be problematic if you have written evidance in support of demotion.
Arun

Hi,
Thanks for your question, in addition to others comments.. the best thing for indiciplined & poor performer is to with hold the increment and promotion under intimation to him. The reduction of the salary will no way work out. In lieu of that his particular weakness area can be identified, trained & motivated for better performance.
Regards,
G Govindaraj

Simple question. Can we reduce the salary when we demote a person as a punishment.
Law permits demotion Law permits reduction in salary as well. Law permits dismissal law permits suspension.
The management needs to decide the punishment
Legally, demotion permits reduction in salary including basic salary
Siva

Hi All,
I'm also really impressed on Durga2 answer. We are the (HRD) Human resource developement professionals. We have to reveal employees posential talents.
thanks.
Selvan

Hello
What is wrong in demotion? Is it not better than dismissal??
In fact, you will come across with demotions only in cases where the person's potential is very low.
In my 35 years career I have come across with demotion in two instances. It has not created any adverse feeling. In fact, if such a bold decision is taken in the correct case, it will be appreciated for two reasons.
1. We have saved a family by saving the earning members job.
2. HR and the management is firm in taking decison.
You will not come across with many cases. But surely, you will come across with one or two cases spread over 20 years.
Siva

Hi Siva,
There are so many things in law which sound illogical. Taking pills for pain without thinking of its side effects may cure ur pain but would get you in many other health issues. Same is the case with demotion. Demoting an employee may be better than dismissal but it would force the employee to put his resignation which is not at all a good idea.
I do not understand one thing that why we Indians stick to the laws. I accept that we should not break the laws but cant we think beyond & take a human decision which bring improvement all over.
THINK BIG & THINK BEYOND THE LIMITATIONS.
Regards