I am working with a private company for the last 7.5 years. On 1st April, they revised the salary structure along with the increment. Earlier, we had basic + DA in our salary structure, but now onwards, although they had increased the basic, they reduced the DA to NIL, reducing the overall basic + DA. Besides this, our PF is on 6500 only. I objected to HR regarding the same as it is reducing my gratuity and did not accept the increment letter. Also, I had resigned on 19th April. Despite my non-acceptance, they processed my salary for April with the new structure and transferred the same to my bank account, for which I had already expressed my protest and asked them to release my full and final with the old structure and salary. I have a few queries:
1) Can they process my salary without my acceptance of the increment and structure?
2) Since I resigned on 19th April, would my March salary be considered as the last drawn salary, or should the salary with which my full and final salary in April be considered as the last drawn salary? The Gratuity Act is not very clear on the term "last drawn salary." Could you please explain with some extracts, supporting documents, or case laws which salary should be considered as the last drawn salary?
3) I believe the company cannot reduce the basic + DA unless it is reducing the salary under various acts, even if PF is on the minimum amount. If yes, could you please explain with some extracts, supporting documents, or case laws?
4) In case they process my full and final with the new salary and structure, what remedies are available to me under different acts?
Please treat this matter as urgent and help me with relevant extracts, supporting documents, or case laws.
From India, Delhi
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1) Can they process my salary without my acceptance of the increment and structure?
2) Since I resigned on 19th April, would my March salary be considered as the last drawn salary, or should the salary with which my full and final salary in April be considered as the last drawn salary? The Gratuity Act is not very clear on the term "last drawn salary." Could you please explain with some extracts, supporting documents, or case laws which salary should be considered as the last drawn salary?
3) I believe the company cannot reduce the basic + DA unless it is reducing the salary under various acts, even if PF is on the minimum amount. If yes, could you please explain with some extracts, supporting documents, or case laws?
4) In case they process my full and final with the new salary and structure, what remedies are available to me under different acts?
Please treat this matter as urgent and help me with relevant extracts, supporting documents, or case laws.
From India, Delhi
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Reducing the statutory salary (the sum of Basic + DA) is not a good HR practice. Therefore, the matter involves an industrial dispute issue. The company should have given advance notice of such changes. However, being a left employee, you have limitations to fight against it. But if your gratuity is processed on the new salary, you can refuse to accept it. When you refuse to accept it, they will have to deposit the amount with the appropriate authority (Labour Department). Then it will become a dispute in which the authority will also be involved. Even otherwise, you can make a representation before the appropriate authority requesting him to intervene and asking him to issue necessary directions to the company to rework the amount of gratuity taking into account the salary prior to revision since the revision has put a reduction in the salary, and that was done with a view to reducing gratuity and other benefits to the employees.
Regards, Madhu.T.K
From India, Kannur
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4482Regards, Madhu.T.K
From India, Kannur
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