Is employer binding to pay employee if he given in written on letter head Is employer binding to pay employee if he given in written on letter head

2 years ago

The employer gave in written confirmation on letter head for paying fix amount each month for taking a loan from a bank but did not mention anything regarding performance, now the employee is not performing well, so can employer stop this payment

Kishan Dutt Kalaskar

Responded 2 years ago

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A.Dear Sir,

Yes, Employer can stop payment of salary and terminate the employee. Before that the employer must create record to the effect that employee not giving good performance and on that ground alone you can terminate him.
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Anik

Responded 2 years ago

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A.Dear Client,
Effective September 11, 2012, the wage ceiling under the Payment of Wages Act, 1936 was increased to an average wage ceiling of INR 18,000 per month pursuant to a notification by the Indian Government. If you are not covered under this act, other remedies are still available.
Fixation of wage period every person responsible for the payment of wages under Section 3 shall fix periods in respect of which such wages shall be payable. No wage period shall exceed one month.
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Kishan Dutt Kalaskar

Responded 2 years ago

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A.Dear Sir,
Yes, employer has every right to stop such payment but before that the employer has to built up a case that employee’s performance is not upto the mark.

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Abhimanyu Shandilya

Responded 2 years ago

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A.Dear Client
The payment of salary is dependent upon the offer letter and/or the employment terms and conditions. If you have a police or rule that the salary of the non-performing employee will be reduced then you can do so.
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