for employee

Any one has to deal with employees working him as per principles of natural justice and as per laid down procedure on such disciplinary proceedings, and there is a laid down procedure for taking such disciplinary action like issuing Show cause notice, framing charges, conducting inquiry, hearing of victim, action by designated disciplinary authority, further appeal process against punishment imposed etc.     Mere stating that he will cut the salaries itself is not action.   You have more powerful Unions, and support of advocates for such unions/assosciations and your leaders can guide you in case of such violation of laid down procedure.