We are a private IT company with a 24/7 shift. An employee is taking continuous emergency leaves without enough time for us to make shift adjustments. Most of the leaves are medical, and the company is well aware that the employee has enough contacts to make fake medical certificates. The management would like to demote this employee rather than terminate her, as a large amount of money was spent on training her. I would like to know if it's legal to demote an employee with a salary reduction.
From India, Kochi
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Dear Vanisree,

The definition of demotion is "act of lowering in rank or position." Legally, you cannot lower an employee's rank or position at your will. It may be noted that "demotion" is a punishment, and to award it, your company needs to conduct a domestic enquiry. In the domestic enquiry, the misconduct must be proved.

As of now, I recommend issuing the employee a warning letter for her unauthorized absence. In case she is absent again, give a show cause notice. If the employee continues to be absent, you should order the domestic enquiry and make a decision afterward.

If you are from the state of Kerala where labor unions are active or hyperactive, it is better to follow a legal procedure to avoid problems in the future.

Thanks,
Dinesh Divekar

From India, Bangalore
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Thank you for your valuable suggestion.
From India, Kochi
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