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Is it legal to change pay structure?
General Rules. A company can legally change an employee's compensation at any time if it doesn't do so for discriminatory reasons, according to Business Management Daily. For example, a business can't change an employee's compensation because he develops an ailment and the company expects his productivity to drop.
Can basic salary be changed?
Under the new system there is a probability that for few employees the basic salary may decrease from their present basic salary., though their gross will either not change or may increase. The employees so affected are also okay with the change.
Can an employer reduce your basic salary?
If you're an employee who isn't protected by a bargaining agreement or employment contract, there is no set amount that you have to be paid. However, employers cannot reduce wages to a level which is lower than the minimum wage in their state. Some states have a higher minimum wage than the federal minimum.
Does basic salary change every month?
In daily basis there is no classification of basic or any allowance. So when a person is getting basic salary means getting the monthly compensation. Now coming back to the question asked that can the basic salary changed every month? Answer is NO if there is no absence.
What will be the basic salary?
Basic salary is the amount paid to an employee before any extras are added or taken off, such as reductions because of salary sacrifice schemes or an increase due to overtime or a bonus. Allowances, such as internet for home-based workers or contributions to phone usage, would also be added to the basic salary.
Can my employer change the way I am paid?
At some stage your employer, or you might want to change your contract of employment. However, neither you nor your employer can change your employment contract without each other's agreement. Changes should normally be made after negotiation and agreement.
Can my employer change my rate of pay?
Where this is not the case, your employer cannot reduce it without your agreement, as this would change the terms of your contract of employment. Again, you may agree to reduced wages, if, for example, the alternative may be reduced hours or redundancy in the current economic situation.
Can an employer change your pay rate without notice?
In most circumstances, you can't reduce an employee's pay unless the employee genuinely agrees. If you reduce an employee's remuneration without their agreement, this may result in a breach of contract.
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