Respected Sir / Madam, My question is Pay cut ( Salary or Attendance) is legal or illegal as per labour law. How to process for pay cut or amount deduction process in employee salary or attendance?
From India, Jamshedpur
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From India, Jamshedpur
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Basic principle to follow is 'no work, no pay'. Divide the employee's monthly gross by 26 days or the actual calendar days and multiply by the number of days he/she worked in that month. Don't confuse deduction with non-payment.
From India, Mumbai
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286From India, Mumbai
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Section 7(2)(b) and Section 9 of the Payment of Wages Act, 1936, provide for the deduction of wages in proportion to the absence, including for refusal to work. Therefore, based on actual absence, the salary can be deducted in the same ratio.
From India, Mumbai
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From India, Mumbai
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Dear Sudipta,
The pay cut is something different from deductions from salary and wages. The word "pay cut" arises when an organization goes for a lay-off. I do not think your question is directing towards lay-off. If a pay cut has to be administered, then the organization has to obtain permission from the government, or otherwise, it will be treated as illegal.
There can be a reduction in salary and wages if there is less attendance. Further, fines, penalties, deductions due for EPF, ESI, and advances, as well as other deductions for which the employee has given consent. All these deductions are either legal or illegal.
From India, Mumbai
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The pay cut is something different from deductions from salary and wages. The word "pay cut" arises when an organization goes for a lay-off. I do not think your question is directing towards lay-off. If a pay cut has to be administered, then the organization has to obtain permission from the government, or otherwise, it will be treated as illegal.
There can be a reduction in salary and wages if there is less attendance. Further, fines, penalties, deductions due for EPF, ESI, and advances, as well as other deductions for which the employee has given consent. All these deductions are either legal or illegal.
From India, Mumbai
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In your statement, the pay cut sounds like how well you have accounted for employee-related issues such as time and attendance, company policy on managing employee organizational culture related to the problem you have raised. If this is the fault you have discovered in that employee within the short term of your relationship with the relative employee, you, as a company, need to remedy that pay cut in the policy before you make the actual deduction. Otherwise, introducing an employee to company policy related to procedures leading to a pay cut in 3 months and above warrants the company to discipline that employee in the form of a pay cut.
From Zambia, Nchelenge
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From Zambia, Nchelenge
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