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Jayaprakash (SMTS)     21 May 2014

Company reduced my basic pay

Hello Sirs,

I Worked for a company in Coimbatore, TamilNadu for 6 Years and 8 Months as  a Full time employee. I relieved from that company on December 24th.

As I am eligible for the Gratuity, I have sent a Form-I to claim my Gratuity.

Until October 2013, My basic pay as per my pay slip was 32,274.00. For the month of November and December, they have reduced the basic pay to 13,167 and splitted the basic pay to allowences like (Special Allowance, Medical Allowance, Personal Allowance and Food Allowance).

Now they are saying that they will calculate the gratuity only with the last month Basic pay which was 13,167 just for 2 months.

Is this the correct way of reducing the basic pay. The company is saying that they have revised the pay structure.

plase advise how can I proceed with.

Awaiting for your reply.

-Jayaprakash

+91 74061 17171



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 8 Replies

Sunil S Nair (lawyer)     21 May 2014

Have you got any information regarding when the basic pay rule was revised in your company was it applied to each employee in that establishment if not you can call them upon by sending a legal notice you also have chance to collect relevant information through RTI

1 Like

Jayaprakash (SMTS)     21 May 2014

Thank you sir for your reply.

The company never communicated the pay structure change to me and the pay structure change is applied for all the employees in the organization.

I came to know this change only when they informed my gratuity pay.

How can I proceed with the gratuity claim now? Please advise.

Sunil S Nair (lawyer)     21 May 2014

You can apply for gratuity from your organization itself there is no means to deny gratuity

Jayaprakash (SMTS)     21 May 2014

Ok.. But as per the gratuity calculation formula, the gratuity will be calculated with the last drawn basic pay which was reduced from 32K to 13K on my payslip.

Please advise how much I can opt for the Gratuity to the company.

The company reduced my last two months Basic pay from 32,000 to 13,000. The rest of the amount, they have added as the allowances like (Special Allowance, Medical Allowance, Food Allowance etc...). This was not communicated to me in any means.

Sunil S Nair (lawyer)     21 May 2014

Collect all releveant details when the basic pay was reduced when it was applied  Main point to note which date it was enforced in the organization then apply accordingly try to communicate and collect the details from the organization but before you sign any documents read it thoroughly understand it then communicate your stand to the respected organization after then you can call them by notice in court of law remember the date from which it was enforced may prove fruitfull for your case

1 Like

Kumar Doab (FIN)     21 May 2014

>>> You should approach a competent and experienced labor consultant/service lawyer AS AP with copies of all documents on record and give inputs in person.

It is obvious that company, its HR personnel are not going to bend. 

>>> Did you receive any circular/letter addressed to you and also pay slip/wage slip/salary slip showing low pay?

How was salary slip supplied to you from some payroll portal/HR portal?

Did you download it yourself?

If yes did you object to reduction of Basic pay?         

Was the employer providing PF, ESIC previously before reduction in salary?

Did it provide PF, ESIC  also after reduction in salary?

Are you member of any employee’s union, trade union?

 

 

What is this company/establishment registered as: Commercial, Industrial, Small Enterprise?

 

 

 

It should have displayed its registration Certificate at a conspicuous place e.g near entrance/on notice board!

 

How many employees are employed in it?           

 

What was your designation in offer letter, appointment letter and nature of duties? 

 

This info shall help hence post it. 

 

 

Ideally the employer should address any amendment/change in writing by letter/written communication addressed to each employee and obtain acceptance to obtain legal force.

If employer has not communicated and you have not accepted then it is unfair and you must object in writing to appointing authority, MD, under proper acknowledgment.

You may also mention that Notice of Determination of Gratuity was not supplied to you despite representations in office on dated……………………..to Mr./Ms………….. designation/dept…………….name of company…………address…………………..

You may also mention that  FormI ( fill details @ past salary) is attached and instrument of payment of gratuity payable at…………………(at par or by bank DD)  be supplied to you by redg. post  only and postage prepaid, self addressed envelope as purchased from PO is attached herewith for sending the payment by redg. post to you.

You may obtain POD and certified copy of run sheet of postman both from PO.

1 Like

Jayaprakash (SMTS)     21 May 2014

Hello Sir,

Thanks for your reply.

Please find the details below.

id you receive any circular/letter addressed to you and also pay slip/wage slip/salary slip showing low pay?

Was the employer providing PF, ESIC previously before reduction in salary?

Did it provide PF, ESIC  also after reduction in salary?

No, They haven't circulated/communicated the pay structure change to me. They will issue the payslip in person to all the individuals. I didn't noticed that change at that time. There is a salary hike happend on November to all the employees. Since I was on Notice period, there is no hike for me. But they just changed the pay structure for me also.

Are you member of any employee’s union, trade union?

No, I'm not a part of any trade unions / employee union

What is this company/establishment registered as: Commercial, Industrial, Small Enterprise?

Its a Private Limited. Its a software company located in coimbatore. Senas.Net Pvt Ltd.,

It should have displayed its registration Certificate at a conspicuous place e.g near entrance/on notice board!

No, There is no such Regn. Certificates displayed.

How many employees are employed in it?     

45-50 employees are working currently.

What was your designation in offer letter, appointment letter and nature of duties? 

My designation was "Tech Lead" when I leave the company. In my appointment order, it is Software Engineer.

Kumar Doab (FIN)     21 May 2014

You have not replied to:

Was the employer providing PF, ESIC previously before reduction in salary?

Did it provide PF, ESIC  also after reduction in salary?

 

You may maintain the salary slip (with change) was not supplied to you and before effecting the change no communication in writing was supplied and you have never concurred to the change. 

 

Let all representations be drafted by your lawyer.


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