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satvekar   16 February 2016

Basic salary reduced in pay structur but gross pay unchanged

Dear Sir,

Sub: Basic Salary reduced in Salary structure while Gross salary is unchanged.

I am working since last 12 years in a public limited company (BSE listed). Now company is going to change the salary structure by reducing the basic salary to 25% of Gross salary, in place of existing basic salary of 40% of gross salary. In both condition the Gross salary is not changed.

 

Existing structure (basic approx. 40% of CTC)

Basic Salary : Rs. 15000/-

CTC: 4,50,000/-

 

New revised structure (basic approx. 25% of CTC)

Basic Salary : Rs. 9,300/-

CTC: 4,50,000/-

 

Sir, this change is not acceptable to me as it will reduce my PF contribution as well as my Gratuity and my Leave encashment at the time of termination.

 

My question is:

Is my company lawful to do this without taking our (employee’s) prior confirmation/acceptance?

And as an employee can we deny it ?

What are the possibilities; what are employees rights?

 

Regards

Satvekar



Learning

 9 Replies

Kumar Doab (FIN)     16 February 2016

Employee's acceptance shall be asked for and rather pressed for.

Explicit acceptance of employee is required.

 

There is a possibility if employees don't accept they may be vindicated.

 

Do you have employee's union/or affilliated with trade unions or Works Committee.

 

The unions can inform the EPFO-APFC/RPFC/Addl CPFC/CPFC etc..............ESIC, O/o Labor Commissioner etc.........

satvekar   17 February 2016

sir,

1) by any mean i will not accept these changes i am very clear with this. in worst scenario i will resign from the job with my old salary structure.

2) workers union is there at factory, but we are executive staff in mumbai city and we dont have any union here.

 

sir can I not fight on my own? is union is necessary?

Kumar Doab (FIN)     17 February 2016

Record irrefutable evidence of of vindication (audio/visual/witnessed/minuted).This shall come handy at appropriate time in appropriate forum.

If you are confident you can place your objections as and when asked for.

Don't accept the salary slip and salary if it is changed without your acceptance.

 

If it is mentioned in communication on the subject that employee shuld confirm in writing or no communication shall be deemed acceptance then communicate under proper acknowledgment.

 

satvekar   17 February 2016

Sir,

I will not accept the new salary structure; but if company insist me to accept this new structure or leave the job. in that case if i left the job and company enforce me the new salary structure as my last drawn salary structure then i will be in great trouble as i would have to bare a huge loss in respect of gratuity.

if i left the job with last drawn salary as per the old salary strucutre where the basic salary is higher then it is in my favor.

 

please reply.

 

Kumar Doab (FIN)     17 February 2016

Record irrefutable evidence of of vindication including but not limited to : asking to leave the job/resign or face termination.

 

Gratuity is payable only if you have served 240/190 days for min. of 5 years.

 

If possible or suitable let the majority of employees resist................................and/or inform the  authorities including but not limited to PF/ESIC/DLC-Gratuity/ALCC etc

satvekar   18 February 2016

Sir,

i am applicable for gratuity as i am working for more than 10 years.

and i am very sure i will not accept this changes and want to leave the job with old salary terms. but........

i am quite scare that my employer will not allow me resign with old salary term and will force me to accept the new salary terms.

in that case can i resist to leave the job with old salary sturcture.

 

 

Kumar Doab (FIN)     18 February 2016

1. Show the language of the Revised Salary Structure to your able counsel specializing in Labor-service matters. In line with language your counsel can advise you to either accept in writing or decline to accept in writing or not to answer at all.

Yu may also show the appointment letter, all rules /policies mentioned in appointment letter, service rules and regulations etc

The revision should require explicit acceptance by employee, however let your counsel finally opine on it.

 

2. Record the evidence of demand of either to accpet or resign.

Demand of resignation can be termed 'Deemed Termination'.

 

3. YOu can minute the demands in writing to good offices of appointing authority,MD ,Chairman etc , of course under proepr acknowledgment and decline to accept the changes.

4. YOu can resign under protest/or by quoting that on dated.......................Mr/Ms .............................asked/forced to accept the changes or demanded resignation and hence you are left with no other option but to resign.............and since you have not accepted new salary structure, you are resigning at old salary structure.

 

Finally consult your able counsel.

satvekar   19 February 2016

Dear Sir,

I dont have any appointment letter issued by company and no any written contract is there mentioning any terms.

Thanks sir for your valuable advise.

Kumar Doab (FIN)     19 February 2016

 

You are welcome!

You have posted that:

"I dont have any appointment letter issued by company and no any written contract is there mentioning any terms."

 

IN that case company may not succeed to claim that salary can be revised as per agreement by the employee.

 

HOpe you have not given consent to such condition by any other communication as well.

 

Does the company have its certified standing orders and if yes,does it cover your designation? If yes does have any clause that salary can be revised?

 

If NO: this shall be in your favor.

 

All posts is this thread shall be meaningful if you haev decided to oppose.

If NO;firm up your next benture ASAP.

And build irrefutable written record on reasons to separate, under proper acknowledgment.

Downlaod evidence of NO misconduct by you, and satisfactory perfromance, and having handed over the charge, under proper acknowledgment.

 

Hope you shall be able to resolve the matter and defend your interest.

 

Or lean on the skills of your counsel.

 


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