employment contracts

Querist : Anonymous (Querist) 10 May 2010 This query is : Resolved
Can an employment contract be subsequently changed by the employer, unilaterally, to the disadvantage of the employee, like reducing his salary or perks etc.?

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Lalit Sharma (Expert) 10 May 2010
no, if the employer changed the contract it amounts to breach of trust and contract. employer can't change the contract once made.

Virender Pankaj (Expert) 10 May 2010
No.

Exception
a. If a condition has already been made in the contract that “the employer can reduce or increase the salary of the employee at any time without informing or notice in writing or consent of the employee”.

The terms and conditions of the contract may be changed by one party with the consent of the other party.

Querist : Anonymous (Querist) 10 May 2010
thank you very much.. i'd also like to know that if an exception like you said can be made, what legal provisions apply there. are there any case laws to this effect.

B K Raghavendra Rao (Expert) 10 May 2010
If there is a clause in the employment contract to the effect that the salary may reduce or increase the salary of the employee, it shall also contain the circumstances under which it can be done so. It is possible to reduce your salary in accordance with that clause.

If there is no such a clause, the salary of a person cannot be reduced at the wish of the employer otherwise than as a punishment.

Querist : Anonymous (Querist) 10 May 2010
Thank you Sir. If possible could you cite some case laws that hold this view?

Raj Kumar Makkad (Expert) 10 May 2010
No change can be made unilaterally at any subsequent stage without any base.

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