Hi,
I have joined an IT company by signing the offer-cum-appointment letter with a written monthly salary structure. However, after 5 months, HR suddenly changed my salary structure, including HRA and BASIC, without any prior notification or my acceptance. Does HR have the power to alter the salary structure of an employee? If YES, shouldn't it be necessary to mention this in the appointment/offer letter that was handed over to me at the time of joining? If NO, what should an employee do?
Thanks.
From India, Noida
Acknowledge(0)
Amend(0)
1I have joined an IT company by signing the offer-cum-appointment letter with a written monthly salary structure. However, after 5 months, HR suddenly changed my salary structure, including HRA and BASIC, without any prior notification or my acceptance. Does HR have the power to alter the salary structure of an employee? If YES, shouldn't it be necessary to mention this in the appointment/offer letter that was handed over to me at the time of joining? If NO, what should an employee do?
Thanks.
From India, Noida
Acknowledge(0)Amend(0)
Industrial Disputes Act prohibits any change of service conditions for employees without notice and mutual agreement. This Act will be applicable to you if you fall within the category of 'workman'.
HR has to abide by the law of the land and cannot act arbitrarily. You can initially raise the dispute before the management by sending a protest letter. Make sure you have proper acknowledgment of the said letter for future reference, if required.
From India, Kolkata
Acknowledge(0)Amend(0)
HR has to abide by the law of the land and cannot act arbitrarily. You can initially raise the dispute before the management by sending a protest letter. Make sure you have proper acknowledgment of the said letter for future reference, if required.
From India, Kolkata
Acknowledge(0)Amend(0)
Salary structures, especially the basic salary, are not changed unless there is a strategic reason and the employees have been included in the decision-making process. Therefore, you should inquire with your HR department as to why the change was implemented.
Equally important is assessing whether the modification will have any adverse effects on you in both the short and long term.
From India, Mumbai
Acknowledge(0)Amend(0)
Equally important is assessing whether the modification will have any adverse effects on you in both the short and long term.
From India, Mumbai
Acknowledge(0)Amend(0)
Ms. Banerjee and others have amply clarified the rule position. It is essential to consider the impact of the change, both in the short term and the long term, before taking action. Additionally, seek clarification from HR on the effects on PF contribution, gratuity, and the reasons for the change.
Best Wishes, Col. Rathi
From India, Delhi
Acknowledge(0)Amend(0)
Best Wishes, Col. Rathi
From India, Delhi
Acknowledge(0)Amend(0)
Happy New Year 2017 to all Cite HR members and team leaders.
Regarding HR changing salary structure - Sometimes, HR will change or modify the allowances due to alterations in PF, ESI, IT Acts, etc., to safeguard the interests of the company and the employees concerned. HR also specifies in Appointment Orders that the Management may adjust, merge Basic, HRA, etc., to accommodate such changes in any Act; however, they will inform employees beforehand to prevent any later misunderstandings.
Therefore, as advised by seniors, please contact HR for any changes if it has resulted in any losses for the employee.
Email: c.neyimkhan@gmail.com
Date: 1.1.2017
From India, Mumbai
Acknowledge(0)Amend(0)
Regarding HR changing salary structure - Sometimes, HR will change or modify the allowances due to alterations in PF, ESI, IT Acts, etc., to safeguard the interests of the company and the employees concerned. HR also specifies in Appointment Orders that the Management may adjust, merge Basic, HRA, etc., to accommodate such changes in any Act; however, they will inform employees beforehand to prevent any later misunderstandings.
Therefore, as advised by seniors, please contact HR for any changes if it has resulted in any losses for the employee.
Email: c.neyimkhan@gmail.com
Date: 1.1.2017
From India, Mumbai
Acknowledge(0)Amend(0)
It is only mentioned that the structure has been changed. If your gross or CTC and basic salary are maintained, you need not worry. Also, your tax liability should not be increased.
Yes, under section 9A of the ID Act, 21 days' prior notice should have been given. But if the above points are true in your case, don't bother too much about these legalities.
From India, Mumbai
Acknowledge(0)Amend(0)
Yes, under section 9A of the ID Act, 21 days' prior notice should have been given. But if the above points are true in your case, don't bother too much about these legalities.
From India, Mumbai
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Change in Salary structure & Nomenclature.do c