reduction of salary of non public fund employee
eswarkumarpotti
(Querist) 18 March 2010
This query is : Resolved
Dear respected experts,
In our organization an employee worked more that 34 years as non public fund employee. Their salary revisions took place once in every 10 years with ordering of board of officers and there after BOO duly recommends the salary hike on the basis of the financial viability of the institute. Now, in this present case BOO was ordered in the year 2003 and again 2008, accordingly on the recommendation of the BOO 2008 their salaries were hikes erroneously by violating the rule position. The management wish/ propose to reduce the salary hike taken place vide BOO 2008 and continue the recommendations of previous one i.e. 2003. Further, the management proposed to waive off the benefits once implemented if she co-operates or otherwise excess payment was made will be recovered in 12 easy monthly equated installments. In the present scenario the financial viability of the service institute unable bear such expenses towards salary of employees. Pl guide me , if management wish do the following will attract any legal complications:-
- To reduce her salary which was approved erroneously by the board of officers?
- Proposed to waive off the excess payment which was received till date from the previous BOO i.e. 2003
- Case laws in this identical matter may please be forwarded.
- In the year of 1971 indira Gandhi govt had reduced the salaries of the LIC employees. If any knowledge on the matter please provide the procedure followed while redicing salaries,
- During recession IT companies have reduced salaries of their employees on what conditions may please be forwarded.
Thanking you all experts.
Raj Kumar Makkad
(Expert) 18 March 2010
You cannot reduce the excess salary without affording an opportunity of hearing to her even if you are not charging so-called excess payment of salary made to her.
In case of private organization not receiving any aid from any Govt.; salary after giving prior notice can be got reduced and order/Gazette notification of 1971 has no application in your favour because that order was passed by President of India directly for all public sector employees and not for private sector.
