Dear HR team,
Kindly clarify, can we reduce the employee's salary by 18(1) wage settlement?
Employee Experience: 5 years
Salary: Rs 25,000/- per month before settlement
After settlement: Rs 23,000/- per month
The reason for the reduction is due to the employee not producing some necessary education proof.
Is it possible to reduce the salary?
Rajesh
From India, Chennai
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Kindly clarify, can we reduce the employee's salary by 18(1) wage settlement?
Employee Experience: 5 years
Salary: Rs 25,000/- per month before settlement
After settlement: Rs 23,000/- per month
The reason for the reduction is due to the employee not producing some necessary education proof.
Is it possible to reduce the salary?
Rajesh
From India, Chennai
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Reduction of salary by way of wage settlement is unheard of, though it is possible. It is also stated that for not producing education proof, the salary is reduced. So I presume the wage reduction is not based on the wage settlement but because the employee has not produced the required educational proof. Therefore, he is getting fixed on a lower salary than what is provided as the corresponding salary after wage revision. Am I correct?
If the employee has been continuously drawing the higher pay and you want to reduce it, the Principles of Natural Justice would apply, and there cannot be any abrupt reduction in salary. You need to give notice as to why the salary should not be reduced and consider the explanation, if any, before reducing the pay.
How you are linking the settlement under Section 18(1) to wage reduction also needs clarity?
From India, Mumbai
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1656If the employee has been continuously drawing the higher pay and you want to reduce it, the Principles of Natural Justice would apply, and there cannot be any abrupt reduction in salary. You need to give notice as to why the salary should not be reduced and consider the explanation, if any, before reducing the pay.
How you are linking the settlement under Section 18(1) to wage reduction also needs clarity?
From India, Mumbai
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Salary-Note.doc
SALARY SHEET CALCULATION.xls