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Senthil Kumar (Patent Consultant)     05 October 2008

Employee Salary

Say an employee working in a company, due to his poor peformance, his employer reduced his salary about 20%.

Is there any provision, where an employee can file a case against his employer.

Kindly reply.




 11 Replies

Sankaranarayanan (Advocate)     05 October 2008

no way to fight with employer frd, if any defoult frm the company  and if against labour law then u can sue against the  company  in labour court . according ur statement  the employer depromote u and reduced the salary . we need the further details abt  ur depromote. some time due to sudden cause of  internal prop the company may  reduced. so u give the correct reason then only give solution

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     05 October 2008

Yes, I agree with Mr. Shankar

H. S. Thukral (Lawyer)     05 October 2008

No employer can not reduce the salary arbitrarily. It can be only through a punishment after giving the employee full opportunity to defend. Law of natural justice has universal application. Employee can file a suit for recovery of his with held salary  and if he is a workman  as per definition under ID Act he can file a claim under section 33 C (2) before a Labour Court

prof s c pratihar (medical practitioner &legal studies)     05 October 2008

correct advice given. go to labour court ,fight under industrial tribunal act.

Senthil Kumar (Patent Consultant)     06 October 2008


Thank you. Excellent suggestion.


Senthil Kumar (Patent Consultant)     06 October 2008


Read my post, I have clearly told that due his poor performance, salary was reduced.

Is that sufficient?

Saravana Rajan   06 October 2008

Mr.  Senthil,

There are a few aspects to be looked into,

1. Poor performance by the concerned employee has been evidentially proved.

2. The employee has acknowledged the revised pay package in writing.

3. His employment terms and conditions include such clauses for demotion / salary reduction in case of poor performance.

4. The employee is fully aware of his perfomance ratings from time to time before his salary is cut.

Subject to above conditions, the employee may not get any legal remedy. But otherwise he may.

Experts to pls opine.

-Saravana Rajan

Sankaranarayanan (Advocate)     06 October 2008

yes thats wat i told u . so many things behind this matter. the statement of saravanakumar is also to think over it. it is not easy to file the case against the management. if they have the evidence then nothing can do frd

Senthil Kumar (Patent Consultant)     06 October 2008


Thank you for your explanation.


P.Elamaran (Law Officer in a CPSU)     07 October 2008

Hi Mr.Senthil Kumar,

There cannot be any unauthorised deductions with regard to an employee's salary. If the deduction from salary happens to be an unauthorised one , then the emplyee concerned can very well take legal recourse which is available under the Payment of Wages Act. The employee can file a complaint to the Inspector or Competent Authority mentioned under the said Act.

With warm regards.

Vikas Kr. Sinha (Labour Lawyer Ranchi Jharkhand)     09 October 2008

I agree with Mr. Harbhajan,I would like to add that apart from Section 33 C (2) of I.D.Act you may chose Payment of Wages Act or Shops & Establishments Act, if applicable in your case for speedy remedy and heigher rate of compensation.

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