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  • Category: Career Guidance

    Change in salary structure without employees consent.


    Have a query about salary structure and related norms for new joinees? Looking out for these norms online. Here, on this Ask Expert page find suggestions which can provide you with inputs to resolve your query.

    1. Can an employer change the salary structure of a new joinee immediately after joining without his consent? What will be the next step if the recruiter does not take any action?
    2. How long can the employer hold the salary of the new joinee during the above dispute?
  • #146304
    Earlier there was a fair practice of the employers to indicate every related issues such as employees accommodation, his nature of job on joining and most importantly the pay structure at which one is to be fitted. In the offer letter, there were all the relevant details.
    It is not uncommon that the employers may change their earlier stance or modifying the earlier pay structure without the consent of the employee. Though this may sound an unpleasant step but this harse step has to be accepted and one can say that this is the exploitation of the unemployed youths facing unemployment.
    The employee may go to the court raising his grievance and such process takes time of its own and the employer may hold the financial benefits of the employees so long as final judgement does not come out. The employer may go to the higher court against the wish of the employee for the ultimate judgement and the process seems to be time consuming.
    The best step under such circumstances would be to continue the job and after acquiring experience for some period, one can switch over to another - job of a different employer following fair practice in terms of employment.

  • #146310
    Generally the appointment of a person is done under certain terms and conditions in form of an agreement where the main salary structure and other facilities are mentioned and the terms of terms of termination of service from either side are also precisely defined. So the employers will generally will not do any changes in that.

    In some cases it is seen that the employer without the consent or informing the employee do some significant changes in the crucial elements like salary and perks and it create an unpleasant situation. It is basically a type of exploitation. The employers also know that the most of the employee will not go to the courts fearing cumbersome and prolonged judicial procedures.

    The best recourse in such cases is to approach the management and request for appropriate remedial measures through cordial dialogues. If they do not listen then one has to consider switching the job to other organisations when such opportunity is available.

    Knowledge is power.

  • #146316
    In private companies or organisations there are fast changes depending upon the business environment and demand and supply conditions in the market. Many times it so happens that the changes being implemented coincide with the joining of some freshers in the company and after joining they find that there are structural changes in their salaries and other facilities.
    If it is so it can not be said as intentional act by the company. So before going for litigation etc one should confirm this aspect.
    Today job position is not comfortable in the industry and people will not take such changes very seriously as there is no harm for working in that company for some time till you get better pastures elsewhere.

    Thoughts exchanged is knowledge gained.

  • #146322
    These days the private companies are giving an appointment letter indicating the Cost to the company(CTC) in the initial letter of appointment. After the candidate joins the job, the HR department will sit with the employee and make the salary break up with the consent of the employee but within the permitted structures of the company pay. This will help the employee to see that some tax component can be decreased. Once that brake up is given it will be followed. But some companies may change the structure after joining the company which is not an ethical practice. But the employee has no option than accepting the same. But in one way it is bad for the company as if this news is spread across the market good people may not join and the people joined also may not stay for long. It is waste of time to go to court and all that. The best course of action is to try for a better job and go there.
    drrao
    always confident

  • #146329
    Companies usually draft the policy of the change in salary structure and also when they can fire the workers. So it's perfectly reasonable and legal for them to draft such policy. Unless company has signed some sort of bong where they are liable to pay you specific sum of salary unconditionally. Then and only then you can legally file claim about the salary change and the job loss. In any other context, the company is liable to change the structure. And also the salary can be revised and also the person can be fired with due notice.

  • #146367
    This may be possible in olden days. In many small concerns the salary is one consolidated, in big organisations only the structure etc., But nowadays everything is discussed during interview itself and finalization. The appointment order is is issued with the gross salary accepted at the time of final interview. The salary structure, that is splitting into various heads such as basic,hra etc. according to the company's rules and practice only and it will never hinder the employee.

  • #146368
    @ Ramachandran pattabiraman, you will surprise to know that the case has happend to an employee of a multi-national company in spite of all discussion and mutual aggrement during the time of interview. Even at the time of on-boarding company stick to the structure aggred and signed. TWO day later the fact was discovered in the employees portal.

  • #146376
    In proprietary and small private firms the final authority is the owner or the person who employed you.
    In large establishments there will be a proper system and things will be put in black and white with certain e conditions binding both on all or specified contexts and situations. Usually such terms re given broadly in employment contracts, appointment letters or public advertisements and announcements . They will be again reminded by circulars, notices and direct letters. Any changes will be based on the earlier terms and any change will be intimated also.

    In establishments where there are bipartite or tripartise systems in vogue like government sector, banks, etc the wage structure is amended by the pay commission, settlements etc as per the system in vogue after proper discussion and mutual acceptance.

    As the particulars inyou case are not given, I guess either it may be a proprietary, partnership or private limited organisation. There is not much scope to oppose. The best solution is to quit. If it is a large organisation, then re-look into the job contract and take up with the employer if it is not in conformity with the contract. In other cases, discrepancy or violations may be taken up through the recognised trade union.
    If not fitting into these, then, there would be some strong reason to impact your salary - probably some action inviting penal provisions.

  • #146734
    Sorry to hear about the change in salary structure, anything verbal and promises given at interviews would not stand water unless it's in writing. From one of the entries, it looks like an MNC is involved. Please re-check the contract signed with respect to the agreed sum, gross and net.Change in structure related to ambiguous terms and added benefits that are based purely on internal performance reviews can be changed by some employers as it is difficult to prove a wrongdoing in the performance review in private firms.It would involve a complaint, request for assessment forms etc.

    Check the impact of the actual change in structure, continue your work and speak to colleagues around you as see whether it's a regular feature or something seriously wrong. Then engage in a healthy discussion with HR and if possible your supervisor and mention about the interview agreements.Continue working, if you find an unacceptable major change in the takehome pay and what's in the agreement, then you have to decide whether you want to get involved in a long draw legal issue. With this option you can approach the labor court/labor commissioner to help you settle it amicably. If not, then start scouting for jobs, take this as an opportunity to learn how you can be misled and move on once a better chance comes your way.


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