Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

bhaveshp.1377 (Executive)     15 July 2012

Salary restrucure

Dea Sir,

Is there empolyer has any right to restructure the salary, wages of the employee arbitrately/forcefullu/one sided?



Learning

 5 Replies

Kumar Doab (FIN)     15 July 2012

NO.

It is felt that Payment of Minimum Wages Act protects the current salary of the employee.

PF and ESI act prohibit reduction in salary and reduction/liability in employer's contribution. Employees can agitate under ID act and any other enactments applicable in the State.

Who are referred to as employees by you? Does it include managers in middle/senior/top management, Directors, as well?

Those who do not fall under the category of workman can approach courts of law.

In such a scenario, all may unite and in the meeting propose to bring down the administrative expenses, electricity bill, tea and coffee, freebies, perks and benefits of top management etc

If the company is using force, coercion, threat, report to the local O/o labor Commissioner, Inspector under SE act. These offices are expected to take suo motto notice hence an email or phone call should suffice. While informing them you may mention that you are planning to call a press conference and shall mention that these offices and Minster of Labor of the state and in Centre have been informed. The employees who are within the definition of workman may approach local trade union.

bhaveshp.1377 (Executive)     29 July 2012

Our Company is Pvt Ltd. company. Since last 15 years they had considered as Basic +PF only. Now they had restructured as Basic + HRA + PF + Others +...... Is this right as per law?

bhaveshp.1377 (Executive)     29 July 2012

I mean they had reduced the basic.

Kumar Doab (FIN)     29 July 2012

Fixed components of salary are guaranteed cash and should not be reduced.

Basic salary should not be reduced. PF contribution shall reduce if basic salary is reduced.

 

Look into the letters/communications/emails etc  sent by employer carefully. Has the employer renegotiated salary with each individual employee and taken acceptance?

Affected employee(s) can approach the union/trade union/IC and report to labor authorities, O/o PF commissioner.

Valuable advice of learned experts/members is sought.

Kumar Doab (FIN)     05 August 2012

Has the company given  days notice as per Sec9a of ID Act or has managed internally by obtaining acceptance on pretext of renegotiated salary?

Is the new basic salary less than currnt minimum wages? Has any employee raised a question on payment of gratuity as per new basic if new basic salary is less than previous basic salary?

Was company deducting PF by fixed limit of Rs.780/ on wage of Rs.6500/pm as per PF Act?

Is there any union in the company? Has company taken union into confidence?

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading