Legal Question in Workers Comp in India

reduction of basic

Hi, i am restructuring the salary of my employees, as per the new structure the basic of existing employees gets reduced. is it legal, or are there any laws against it in India


Asked on 11/27/08, 6:30 am

2 Answers from Attorneys
Nasir Butt Nasir Law Associates

Re: reduction of basic

Unless you have contract concerning on pay structure, there is no, in general, law suggesting the break up of salary. It all depends on company's rules. Normally, taxation laws are taken into consideration while determining basic pay, as it is, normally, exempted from income tax.

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Answered on 11/27/08, 11:37 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: reduction of basic

there are several factors determining this issue; also depends if your establishment is covered under I.D.Act; and if not, the contractual obligations you may have with the existing employees.

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Answered on 11/27/08, 8:32 am


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