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Avinash Kumar Sharma (Sr. Manager HR)     19 June 2012

Changes in salary head

Dear Sirs,

Can we increase the amount in some salary heads and decrease the amount in other salary heads while revising the salary structure though we have increased Gross salary, take home salary & CTC. While doing so we have not reduced the Basic Salary  and contribution in PF & ESI.

Regards,

Avinash



Learning

 1 Replies

Hemang (Advocate)     20 June 2012

It is always open to the employers to do so, or to articulate the new terms so long as the basic terms and conditions are not altered to the disadvantage of the employees. However, it is better to come to a consesus with the employees, explain them well and enter into a fresh agreement over the issue of salary, which would amount to "revision" in pay and perks. A relevant consideration is that the financial deprivation to a lesser advantage should not be meted out since the rights of the employees were already crystelised for receiving particular financial packages in consideration of services. Or else, they may drag you before the Concilliation officer, or a Labour Court for "alteration or change in condition of services".


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