Dear HR Friends,
Our company is planning to reduce working days from 6 to 5. We intend to designate Saturday and Sunday as the weekly days off. Given that employees will be spending less time in the office, is it possible to decrease their basic salaries? If so, what would the ratio be? Please advise.
Regards,
Dev
From India, Delhi
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Our company is planning to reduce working days from 6 to 5. We intend to designate Saturday and Sunday as the weekly days off. Given that employees will be spending less time in the office, is it possible to decrease their basic salaries? If so, what would the ratio be? Please advise.
Regards,
Dev
From India, Delhi
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Dear Dev, Doest it mean that your employees are ready to reduce their current earnings ??? Prashant 09011070437
From India, Pune
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47From India, Pune
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No you can not reduce the base salary, under some judgement given by the court. sorry i couldnt recall the case. but soon come back to you with the case.
From India, Mumbai
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From India, Mumbai
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No, you cannot reduce the base salary of an employee. This is based on a judgment given by the court. Sorry, I couldn't recall the case, but I will come back to you soon with details of that case.
But you should consult the legal advisors of your company; there could be some circumventing solutions to it.
From India, Mumbai
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But you should consult the legal advisors of your company; there could be some circumventing solutions to it.
From India, Mumbai
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You cannot reduce the basic salary of any employee. Please understand that all the statutory deductions like PF, gratuity, superannuation are based on it. The quantum of deduction cannot come down from a given level.
From Germany
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From Germany
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Hi,
According to the Minimum Wages Act, which is determined by the state, you must pay a higher amount. So, it is not necessary that you work from 6 to 5 or 6 to 3. What is necessary is that you must follow the Minimum Wages Act rule.
BR/ Sudhir
From India, Bhopal
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According to the Minimum Wages Act, which is determined by the state, you must pay a higher amount. So, it is not necessary that you work from 6 to 5 or 6 to 3. What is necessary is that you must follow the Minimum Wages Act rule.
BR/ Sudhir
From India, Bhopal
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Thanks to all of you for responding. Can Anyone out here give me some reference like any court decision or definition given by any legal authority in this reference? Pls reply Regards, Dev
From India, Delhi
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From India, Delhi
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No, I don't think it is a good idea to reduce the workload and cut the package of the employees. Instead, consider reducing the manpower and exploring other ways to generate revenue for the company.
Khan/ KCS Recruitments.
From India, Pune
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Khan/ KCS Recruitments.
From India, Pune
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Dear Dev,
The first question to be answered is how the company is going to substantiate squeezing working days from 6 to 5. Whether it would fall under 'Lay Off' or 'Block Closure'. If the company declares it as only a normal reduction of working hours/days, then it has no right to deduct from the employee's basic salary. As you mentioned in your post that it would be a weekly off, there is no chance of reducing the salary.
In the case of Layoff and Block Closure, it may lead to the deduction of salary. However, in both cases, you must take care of the relevant laws and rules defined under the ID Act.
Regards,
Anshu
From India, Jamshedpur
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The first question to be answered is how the company is going to substantiate squeezing working days from 6 to 5. Whether it would fall under 'Lay Off' or 'Block Closure'. If the company declares it as only a normal reduction of working hours/days, then it has no right to deduct from the employee's basic salary. As you mentioned in your post that it would be a weekly off, there is no chance of reducing the salary.
In the case of Layoff and Block Closure, it may lead to the deduction of salary. However, in both cases, you must take care of the relevant laws and rules defined under the ID Act.
Regards,
Anshu
From India, Jamshedpur
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