Dear Adesh Sachan,

Go through the original contract to check whether there is a Clause empowering the Company to revise your terms of employment, as and when the Company deems it necessary. Usualy Companies have such a Clause to protect their interests. If there is no such clause, you can take recourse to legal actions.

Best Wishes.

Thanks I will crosscheck the same and get back to you.

(L)advote mr.kalyanam has given the best ans.plz. check up ur revised terms and conditions of service ...thanks(.)

The conduct of employer is arbitrary, bad, and practice is unfair and there is certainly a malafide motive. You should see to it that you do not accept the reduced salary in writing. Company may record the acceptance as voluntary acceptance, with mutual consent.

Has the company supplied any notice for reduction in wages explaining the logic or reason? From your post it is noted that company has not called you to renegotiate salary, has not demoted you, has not leveled any charge and has not conducted any enquiry leading to reduction in salary.

Is the company reducing the salary by cutting on perks and other benefits? Is the company revising the terms of employment and notifying the reduction of salary? It is your discretion to accept or not? If the company is daring it may mention to accept or leave the job.

Section 9A in The Industrial Disputes Act, 1947

9A. Notice of change.- No employer, who proposes to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule, shall effect such change,--

(a) without giving to the workmen likely to be affected by such change a notice in the prescribed manner of the nature of the change proposed to be effected; or

1. Subs. by Act 36 of 1956, s. 5, for ss. 8 and 9 (w. e. f. 10- 3- 1957 ). 2. Ins. by s. 6, ibid. (w. e. f. 10- 3- 1957 ).

(b) within twenty- one days of giving such notice: Provided that no notice shall be required for effecting any such change—

THE FOURTH SCHEDULE

(See Section 9-A)

CONDITIONS OF SERVICE FOR CHANGE OF WHICH NOTICE IS TO BE GIVEN

You may refer to THE PAYMENT OF WAGES ACT, 1936 also.

If you are from management and other employees to whom labor laws are not applicable you may refer to SE act applicable to your state.

You have worked for 4Y11M, it is felt that you should be eligible for gratuity.

If you are contemplating to resign you may tender notice of resignation and mention your effective date of resignation/last day in office shall be dated…………Notice period is counted in service period. You can submit Form I to employer for payment of gratuity.

Rules of Payment of Gratuity:

7. Application for gratuity.-(1) An employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form 'I' to the employer:

    Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.

8. Notice for payment of gratuity.-(1) Within fifteen days of the receipt of an application under rule 7 for payment of gratuity, the employer shall-

if the claim is found admissible on verification, issue a notice in Form 'L’ to the applicant employee, nominee or legal heir, as the case may be, specifying the amount of gratuity payable and fixing a date, not being later than the thirtieth day after the date of receipt of the application, for payment thereof,

Basic wages can not be reduced and can not be less than minimum wages.

PF and Gratuity are covered under Social Security Laws. The gratuity act is to benefit the employee and employer should on its own arrive on a conclusion which benefits the employee.

The EPF & MP Act, 1952 is beneficial social security legislation, and the view which helps the achievement of the object should be preferred and accordingly the assessing authority while determining dues under Section 7A should curb any attempt to curtail the legitimate social security benefits of the employees. The contribution should not be reduced; implying salary should not be reduced.

Employees Provident Fund and Miscellaneous Provisions Act, 1952

12. Employer not to reduce wages etc  

No employer in relation to an establishment to which any Scheme or the Insurance Scheme applies shall by reason only of his liability for the payment of any contribution to the Fund or the Insurance Fund or any charges under this Act or the Scheme or the Insurance Scheme reduce whether directly or indirectly the wages of any employee to whom the Scheme or the Insurance Scheme applies or the total quantum of benefits in the nature of old age pension gratuity provident fund or life insurance to which the employee is entitled under the terms of his employment express or implied.

Enforcement authorities under the act can check that why certain employees are being paid as consolidated salary and while more beneficial system of bifurcation exists. Employee can rake up the mater claiming company is intending to take undue advantage of statutory provisions.

If you decide not accep[t revised terms and to separate on old terms you may tender notice of resignation clearly mentioning that you are resigning for reasons..........(your remuneration is being reduced to half and you do not accept it). Once you tender notice of resignation ( under proper acknowledgment) your date of retirement is known to employer,and therefore you may submit Form I under acknowledgment to employer for payment of gartuity.

"Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement."

You are eligible for gratuity as per Payment of Grtuity Act.

SC judgement is also enclosed.

Section: 2A
Continuous service.

For the purposes of this Act, -

(2) (a)for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) one hundred and twenty days, in any other case;

Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -

(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicab1c to the establishment;

(ii) he has been on leave with full wages, earned in the previous year;

(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and

(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.

The act is clear.

Wages are fixed for the position that an employee occupies, they are not fixed for the employee.  There shall be equal pay for equal work.  Taking same amount of work but reducing wages amounts to unequal pay for equal work hence it is against Article 39(d) of Constitution of India.