tahir_hrm
If a company is planning to discontinue any monetary benefit which is currently being awarded to employees then what steps should organization take for smooth implementation of this change and avoid resistance from employees?
Thanks
Tahir

From Pakistan, Faisalabad
korgaonkar k a
2556

Dear Tahir ji,

I believe your query is pertaining to Indian Law context and not Pakistan. If your establishment / company is an "Industry" as defined in Section 2 (j) of ID Act 1947 (India), please read the provision under section 9A of ID Act which is given under verbatim.

9A. Notice of change.- No employer, who proposes to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule, shall effect such change,--

(a) without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the nature of the change proposed to be effected; or

(b) within twenty-one days of giving such notice:

Provided that no notice shall be required for effecting any such change--

(a) where the change is effected in pursuance of any settlement or award; or

(b) where the workmen likely to be affected by the change are persons to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence Services Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf by the appropriate Government in the Official Gazette, apply.

I am also giving a list of item under Forth Schedule for your ready reference:

1. Wages, including the period and mode of payment;

2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workmen under any law for the time being in force;

3. Compensatory and other allowances;

4. Hours of work and rest intervals;

5. Leave with wages and holidays;

6. Starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders;

7. Classification by grades;

8. Withdrawal of any customary concession or privilege or change in usage.

9. Introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing orders;

10.Rationalisation, standardization or improvement of plant or technique which is likely to lead to retrenchment of workmen;

11. Any increase or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift, not occasioned by circumstances over which the employer has no control.

I hope you got the the answer.

From India, Mumbai
saswatabanerjee
2392

Tahir
What is the emphasis of the question ? Legal or Industrial Relation ?
If it is legal and not pertaining to,Pakistan laws, then KK has already given the correct answer.
If you are talking of industrial relation, then well, there is no smooth way of telling an employee that he is going to lose a particular monitory benefit. What is the nature of this benefit ? Wy was it given and whynismtimbeing withdrawn ? Details of that will help members give the right answer.

From India, Mumbai
tajsateesh
1637

Hello Tahir,
Pl clarify/confirm the details mentioned by Saswatabanerjee.
But FIRST pl confirm IF you are speaking w.r.t. Pakistan laws OR Indian? The options available to you will change a lot depending on this aspect.
Rgds,
TS

From India, Hyderabad
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