Joylyn
1

Hi People, Is it legal to reduce an employee’s salary in case the employee has lied about his education and joined a company? Your views on this please... Regards, Joylyn
From India, Bangalore
harindersingh
That employee should be thankful to his employer for only reducing his salary...Otherwise he could face legal action(s) from employer for giving false/fake information.....You remember we sign a declaration at the time of joining that all the information given below/above is
TRUE TO BEST OF HIS/HER KNOWLEDGE
and so on...
These days some companies get everything verified from 3rd party agencies. They outsource all the work for checking Degrees/Certificates/Experience etc
I heard that some companies even fired people after 3 months of joining...since they gave false/fake information at the time of joining.
So Never do that...:)

From India, Gurgaon
Amith R Murthy
16

Hi Joylyn,
According to me it is illegal to reduce the salary but i am not sure about reduction of salary in such a case. Still i would suggest the best measure to take up is dismiss the employee until and unless that particular employee is too good or have lots of problem.
About reduction of salary we had a discussion stating that it is illegal to cut i mean it is not permitted according to law.
But members can you contribute on this, is this legally correct...........
Regards
Amith R.

From India, Bangalore
ashly_kapoor
Well as far as my views are concerned, though its true that the salary reduction is illegal but as the employee can even be dismissed on providing wrong information...in this case if you think he is a good worker and you want to retain it too, then i would suggest, formally demote him to a lower level and give lesser salary as to what he/she is drawing now.
This would take care of legal issues too and the employee would also be thankful that you are just giving a demotion and not terminating him (which you can as per initial declaration). Hope it helps deciding his/her fate.
Regards,
Ashissh

From India, Gurgaon
skmoudgal
Yes, it can be legally approved, provided the punishment of reduction in salary should be awarded after proper adoption of legal disciplinary action procedure and the reduced salary should be according to the employees actual qualification and experience i.e. minimum wages or according to other wage rules prevailing in the particular area.
If the essential qualification for a particular task involves some technical knowledge and the employee does not possess that, in that case the employee should not be kept on that task even after reducing the salary. He should be given task which is matching his qualification.
Thanks.
S. K. Moudgal

09891992792

From India, Delhi
kennethnyc1
I have over 100 employees and we are in the retail jewelry indust.
I would like to reduce an employees salary $50 a week due to the fact of a $500 company phurchase of a fake none gold item. He has been properly trained and did not follow policy. Can I do this?

From United States, Port Monmouth
sandeep_sable
5

Hi ,
what i suugest you is terminate his present employment status, and re hire him for the new task that he is suitable according to his educational qualification.
Salary reduction is not justifed under legal obligations.
do not make your own laws , your actions should be legally justified.
.....

From India, Pune
lexorcist
@ Joylyn:

I agree with others to the extent that rather than reducing the salary, a better option would be to issue a formal memo to the employee (preferably quoting the section of the employment agreement or appointment letter dealing with genuiness of employee given information) stating how he/she has not complied with the employement policies and hence he/she would be liable to be terminated/demoted/or any other action as the company policy prescribes. If you wish to retain the employee but at lower rank and salary, you could add something t this effect: However, in view of the employee's good conduct and performance, the company has decided to retain the services but at ___ (lower) salary and ___ (lower position).

@ kennethnyc1:

I am not sure if you can reduce the salary of an employee for one mistake which cost the company $500, as long as the person is qualified to be in the position he is in, as there is already an agreement between you and him on a particular salary amount. You could issue a show-cause notice asking the employee for explanation for his conduct which has resulted in the losses, and then based on a formal discussin with the employee, implement any salary cuts (of course, all of these has to be documented, with reasons).

Your friendly Lexorcist

From United States, Falls Church
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