Making It Illegal for Private Employers To Ask Current CTC From Caandidate
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Asking an applicant “What’s your current salary?” has been part and parcel of the hiring process for as long as employers have been hiring employees. This potentially illegal hiring question as it leads to widen the pay gap and in some cases against the act Equal Remuneration Act, 1976
Today, however, asking job applicants for their salary histories is illegal in a growing number of states and even cities in other developed countries. As part of a larger effort to reduce the "pay gap,” it is used as a tool to exploit/ assess candidate even before they are interviewed in India in the name of company policy.
The rationale is that pay discrimination can follow employees from job to job throughout their careers, resulting in a systemic reduction in their earning power. If an employee experiences pay inequality in a prior job, disclosing their past salary when applying for a new job has the potential to perpetuate the effect of the past discrimination.
When a candidate deny sharing the salary slips or appraisal letters to the prospective employer, employers refuse to process the LOI/ CV without these documents is violation of Right to Privacy.
In Many case where candidates have denied giving current salary they gets a reply as its the company has it’s own internal policy and budget allocated for hiring and HR has to work in the given budget. So in the case asking for expected ctc should be more than enough as asking applicants for their salary expectations is still permissible in all jurisdictions.
Also, organisations like Aon Hewitt, Deloitte, Pinkerton etc. are coming out with detailed Annual Compensation Survey Reports to enable companies manage the pay out to their employees. These reports include industry-wise, level-wise, function wise comprehensive analysis of monetary and non monetary parts of compensation and benefits. So when there is data available then why intrude into a candidate 's documents.
So, its against Right To Privacy and Equal Remuneration Act, 1976. We should take a stand to stop the unethical practices going in the private job market.
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