I am working with a private company from last 7.5 years. On 1st April they revised the salary structure along with the increment. Earlier we had basic+ Da in our salary structure but now onwards although they had increased the basic but reduced the DA to NIL reducing over all basic+da. Beside this our PF on on 6500 only. I object to HR regarding the same as it is reducing my gratuity & did not accept the increment letter. Beside this I had resigned on 19th April. In spite of non acceptance, they had processed by salary for April with new structure & transfer the same to my bank account & for which I had already showed my protest & ask them to release my full & final with the old structure & salary. I had few queries:
1) Can they process my salary without my acceptance to the increment & structure?
2) Since I had resigned on 19th April. So my march salary would be considered as last drawn salary / salary with which my full & final salary / April salary would be considered as last drawn salary.. as gratuity act is not very clear on the term last drawn salary .please explain with some extracts / supporting documents / case laws.... which salary should be considered as last drawn salary.
3) I believe company cannot reduce the basic+ DA, unless it is reducing the salary, under various acts even if PF is on the minimum amount. If yes please explain with some extracts/supporting document/case laws
4) In case they do my full & final with the new salary & structure, what are the remedies available to me under different acts..
Please treat this matter as urgent & help me out with relevant extracts/supporting document/case laws ....
From India, Delhi
1) Can they process my salary without my acceptance to the increment & structure?
2) Since I had resigned on 19th April. So my march salary would be considered as last drawn salary / salary with which my full & final salary / April salary would be considered as last drawn salary.. as gratuity act is not very clear on the term last drawn salary .please explain with some extracts / supporting documents / case laws.... which salary should be considered as last drawn salary.
3) I believe company cannot reduce the basic+ DA, unless it is reducing the salary, under various acts even if PF is on the minimum amount. If yes please explain with some extracts/supporting document/case laws
4) In case they do my full & final with the new salary & structure, what are the remedies available to me under different acts..
Please treat this matter as urgent & help me out with relevant extracts/supporting document/case laws ....
From India, Delhi
Reducing the statutory salary (the sum of Basic + DA) is not a good HR practice. Therefore, the matter involves an industrial dispute issue. The company should have given advance notice of such changes. However, being a left employee you have limitations to fight against it. But if your gratuity is processed on the new salary, you can refuse to accept it. When you refuse to accept it, they will have to deposit the amount with the appropriate authority (Labour Department) Then it will become a dispute in which the authority will also involve. Even otherwise, you can make a representation before the appropriate authority requesting him to intervene and asking him to issue necessary directions to the company to rework the amount of gratuity taking into account the salary prior to revision since the revision has put a reduction in the salary and that was done with a view to reducing gratuity and other benefits to the employees.
Regards,
Madhu.T.K
From India, Kannur
4250Regards,
Madhu.T.K
From India, Kannur
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Salary-Note.doc
SALARY SHEET CALCULATION.xls