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Mayuree Pal   21 April 2018

reduction of basic without prior intimation

Can a pvt ltd company reduce employee basic pay to half after six months of working without informing the employees? This has basically been done to reduce employer's contribution to provident fund. But due to slashing of basic pay the salary structure has been modified to that mentioned in the contract entered while joining the company. No fresh structure has been issued against the new salary structure niether the employees recieved any prior intimation. I wish to know this that whether company can legally do such a thing? and if my salary structure has changed without any prior notice does that make my contract null and void?


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 3 Replies

P. Venu (Advocate)     21 April 2018

There cannot be any such unilteral change in the service conditions.

1 Like

subhash chander verma (1)     21 April 2018

Dear, it is a violation of Section 9A of Industrial Dispute Act, for which you can avail suitable remedy as provided under the said Act.

subhash chander verma (1)     21 April 2018

Dear, it is a violation of Section 9A of Industrial Dispute Act, for which you can avail suitable remedy as provided under the said Act.

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