can an employer reduce basic salary without consent of emplyee in the name of appraisal? If not what action we can take ?
From India, Gurgaon
From India, Gurgaon
Dear Monika,
As per law employer never reduce your basic salary in any name or mode.
If you are a workmen as classified by the ID Act, you can complain to the Labour commissioner.
If you are not a workmen, your only remedy is to file a civil case for restoring your previous basic salary. But, this litigation with your employer will affect your relationship.
Thanks
From India, Jaipur
30As per law employer never reduce your basic salary in any name or mode.
If you are a workmen as classified by the ID Act, you can complain to the Labour commissioner.
If you are not a workmen, your only remedy is to file a civil case for restoring your previous basic salary. But, this litigation with your employer will affect your relationship.
Thanks
From India, Jaipur
Hello Monica,
Your employer can't reduce the basic pay, if they done with that than needs to face following problem.
* EPF Office will be not allowed such Reduction in amount.
* Labour department will not allowed for Bonus and Gratuity amount.
* Minimum wage act will be considered or not needs to see.
Seniors please put some light on this.
Thanking you,
Regards,
Ashish
From India, Pune
Your employer can't reduce the basic pay, if they done with that than needs to face following problem.
* EPF Office will be not allowed such Reduction in amount.
* Labour department will not allowed for Bonus and Gratuity amount.
* Minimum wage act will be considered or not needs to see.
Seniors please put some light on this.
Thanking you,
Regards,
Ashish
From India, Pune
Does your company policy has any mentions about such activities??
But what ever the case may be, under law it is considered as fraud and you can take both civil and criminal actions against the same.....
From India, Bangalore
But what ever the case may be, under law it is considered as fraud and you can take both civil and criminal actions against the same.....
From India, Bangalore
Hi,
My company has reduced my basic salary from 40% to 30% along with appraisal letter & kept the gross salary same by increasing the allowances & pf contribution but reduced gratuity & written that based on the performance, you are not eligible for salary increment & bonus.
As per the company " deduction or increment in salary can be made by the company basis performance at any point in time and it at the sole discretion of the management of the company ".
I hadn't accepted it & resigned.
please help me.
From India, Gurgaon
My company has reduced my basic salary from 40% to 30% along with appraisal letter & kept the gross salary same by increasing the allowances & pf contribution but reduced gratuity & written that based on the performance, you are not eligible for salary increment & bonus.
As per the company " deduction or increment in salary can be made by the company basis performance at any point in time and it at the sole discretion of the management of the company ".
I hadn't accepted it & resigned.
please help me.
From India, Gurgaon
if you haven't accepted then there is no agreement in existence at all as per law , u have no base in this case...... only option left is whether to accept the job or search for another.......
you have answered your own question : " deduction or increment in salary can be made by the company basis performance at any point in time and it at the sole discretion of the management of the company ".
attribution https://www.citehr.com/468397-reduct...#ixzz2bs17Wgh8
From India, Bangalore
you have answered your own question : " deduction or increment in salary can be made by the company basis performance at any point in time and it at the sole discretion of the management of the company ".
attribution https://www.citehr.com/468397-reduct...#ixzz2bs17Wgh8
From India, Bangalore
Hello Monica, Please share the employer name so i will take care in future and refer candidates not to join such organization. Thanking you, Regards, Ashish
From India, Pune
From India, Pune
Dear Sir,
As the gross salary is the same, you need not worry about reduction of basic salary. You please try to improve your performance,
automatically, it will be increased.
D.Gurumurthy
HR & IR Consultant,
Hyderabad.
From India, Hyderabad
As the gross salary is the same, you need not worry about reduction of basic salary. You please try to improve your performance,
automatically, it will be increased.
D.Gurumurthy
HR & IR Consultant,
Hyderabad.
From India, Hyderabad
Very preventive!! But, it is difficult to decide any of these kind of cases where we hardly know the facts of each side and conclude what's indeed being practiced.... there are some employees even fail to understand the clauses of the agreement in the way it is meant to be understood.........
Have a nice day........
From India, Bangalore
Have a nice day........
From India, Bangalore
Dear Forum members,
I will not agree with the views of our respected member D.Gurumurthy .
First & Foremost as per P.F. law you cannot reduce the Basic .
Further P.F is a long term benefit plan for the employee.
Hope the respected member will correct his views without prejudice.
Regards
Ravi
From India, Mumbai
I will not agree with the views of our respected member D.Gurumurthy .
First & Foremost as per P.F. law you cannot reduce the Basic .
Further P.F is a long term benefit plan for the employee.
Hope the respected member will correct his views without prejudice.
Regards
Ravi
From India, Mumbai
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Basic Pay for EPF Contribution-re duction not permissible.doc x
SALARY SHEET CALCULATION.xls