Superannuation Clarification Needed
I joined a Ltd company in 1986. After 12 years, my company merged with an MNC. At the time of my appointment, the Indian company offered me 15% of my consolidated salary as superannuation in the offer letter. However, during the harmonization process, the MNC changed the terms, stating that superannuation is 15% of salary and supplementary salary. The MNC is now depositing 15% of my basic salary into the superannuation account, which differs from the practice of my parent company.
I have a question regarding the term "supplementary salary." Could you please clarify its meaning?
Furthermore, I would like to confirm if I am eligible for superannuation at the rate of 15% for my total salary amount.
Thank you.
From India, Mumbai
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I joined a Ltd company in 1986. After 12 years, my company merged with an MNC. At the time of my appointment, the Indian company offered me 15% of my consolidated salary as superannuation in the offer letter. However, during the harmonization process, the MNC changed the terms, stating that superannuation is 15% of salary and supplementary salary. The MNC is now depositing 15% of my basic salary into the superannuation account, which differs from the practice of my parent company.
I have a question regarding the term "supplementary salary." Could you please clarify its meaning?
Furthermore, I would like to confirm if I am eligible for superannuation at the rate of 15% for my total salary amount.
Thank you.
From India, Mumbai
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Rights Regarding Contract Changes After Company Merger
Your company has no right to change your contract when it is merged with the MNC. If the word used is "salary" or "consolidated salary" in your original offer letter, then they have to pay you the same. Salary, in no sense, means Basic Salary. It means all remuneration in cash or kind. So, simply speaking, they have to pay you what the old company has agreed to pay.
Actions You Can Take
1) File a civil suit under the Indian Contract Act against your old company.
2) File a case under Section 420 of the Indian Penal Code, as this is considered cheating. Your company made a promise it never intended to keep.
3) Seek resolution through the labor court under the Industrial Employment Standing Order.
4) Seek assistance from the labor department under the Shops and Establishment Act.
From India, Kolkata
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180Your company has no right to change your contract when it is merged with the MNC. If the word used is "salary" or "consolidated salary" in your original offer letter, then they have to pay you the same. Salary, in no sense, means Basic Salary. It means all remuneration in cash or kind. So, simply speaking, they have to pay you what the old company has agreed to pay.
Actions You Can Take
1) File a civil suit under the Indian Contract Act against your old company.
2) File a case under Section 420 of the Indian Penal Code, as this is considered cheating. Your company made a promise it never intended to keep.
3) Seek resolution through the labor court under the Industrial Employment Standing Order.
4) Seek assistance from the labor department under the Shops and Establishment Act.
From India, Kolkata
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Supplementary salary is the additional remuneration paid to employees in the form of allowances or otherwise, over and above the basic wages. The specialty of this supplementary salary is that whatever is paid under these heads has no consequential effect on certain statutory indirect monetary commitments like gratuity and is not exempt from Income Tax.
The course of remedy in the described situation is determined by the status of your employment, i.e., whether you are a "workman" as per section 2(s) of the Industrial Disputes Act, 1947, at the time of merger and after as well, or you were initially employed as a workman but subsequently elevated to that of supervisory/administrative/managerial cadre after the merger.
If you are a workman before and after the merger, the new management cannot modify the above service condition in a less favorable way as per the conditions stipulated under section 25-FF(b) of the ID Act, 1947.
In either case, you are eligible for superannuation benefits at the rate prevailing before the merger.
Regards
From India, Salem
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The course of remedy in the described situation is determined by the status of your employment, i.e., whether you are a "workman" as per section 2(s) of the Industrial Disputes Act, 1947, at the time of merger and after as well, or you were initially employed as a workman but subsequently elevated to that of supervisory/administrative/managerial cadre after the merger.
If you are a workman before and after the merger, the new management cannot modify the above service condition in a less favorable way as per the conditions stipulated under section 25-FF(b) of the ID Act, 1947.
In either case, you are eligible for superannuation benefits at the rate prevailing before the merger.
Regards
From India, Salem
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