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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.
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.
In many cases, the answer is yes. The amount you make and the hours you work aren't guaranteed. If you aren't protected by an employment contract or bargaining agreement, your employer can reduce your salary and your work schedule at any time, with some limitations.
It is illegal if an employer cuts pay for a contracted employee if the contract explicitly states the salary can't be reduced to a lower amount. Employers can't reduce wages to an amount lower than the state's minimum wage. Check with your state for your minimum wage rate before reducing salaries.
Can an employer reduce an employee's pay to minimum wage during his or her two-weeks' notice period? The Fair Labor Standards Act generally does not prohibit an employer from reducing an at-will employee's hourly rate, provided the employee is paid at least minimum wage.
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.
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.
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.
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