Some like 91Springboard and Grofers have put a few of their employees on the bench. Such widespread movement of large number of human beings is definitely dangerous and contrary to the efforts of containment of the disaster. ... pay cuts during lockdown income covid education job salary. However, these advisories were not binding and were merely directory in nature. The Government has appealed to companies to refrain from laying off employees during the lockdown period. On March 23, the Modi government had asked public and private sector companies not to cut salaries or lay off employees during the COVID-19 lockdown. A reading of the provisions of the Act would show that powers have not been vested with either the State or the Central Governme… It’s great!”, © Copyright 2006 - 2021 Law Business Research. Many corporates have already announced salary cuts, some have asked employees to leave, and others have asked their employees to go on furlough, the term for leave without pay. It is truly anyone’s guess as to how long the shutdown will last, and there are several factors to be taken into consideration. The April to June quarter is likely to be extremely tough for businesses, with marginal sales across segments. Besides, 30% salary has been deducted for all 250 employees. Keep a step ahead of your key competitors and benchmark against them. At least when it's allover, they will still have secured jobs to go to. SpiceJet had announced a 30% salary cut for its employees for the month of March and had declared "leave without pay" during March 25-31 period. This means we, as consumers, are ourselves responsible for checking the quality and efficacy of goods that we purchase. Accordingly, it can be said that order dated 29.03.2020 is based on a reasonable classification. To take a pay cut Your employer may look at reducing your pay in an attempt to reduce their overheads if they're struggling to stay afloat. In his speech on April 14 announcing extension of the lockdown, Prime Minister Modi urged companies to be kind to employees. Given their focus on the food and grocery segment, firms such as BigBasket sense an opportunity amid the crisis and have announced the acquisition of micro-delivery startup DailyNinja. EOH, for example, has … In respect of the employees who have not reported for work despite direction, the employer shall always be at liberty not to pay for the period of unauthorized absenteeism. Being an order passed under the DMA, this is a binding order and not a directive, and the DMA provides for criminal action against those who refuse to comply. Q1. "We have agreed for a 10 per cent pay cut because we want everyone's job to be safe. Power up your legal research with modern workflow tools, AI conceptual search and premium content sets that leverage Lexology's archive of 900,000+ articles contributed by the world's leading law firms. If such interpretation is accepted, then the entire act would become a toothless legislation leaving the central government to be completely helpless and hapless. No salary cuts or job loss during lockdown: ESL. The aim is to prevent violation of lock down and social distancing norms by the labourers, who had started or could have started, migrating to their native places in the absence of livelihood and to ensure that they are not deprived of food and other basic amenities. Shuttl, the app-based bus aggregator, is headed for salary cuts and probably lay-offs, as the Sequoia-backed start-up stares at business losses amid the lockdown. If this is … Unpaid leave or temporary layoffs Irrespective of how companies choose to proceed during these tenuous times, it would be prudent to seek legal advice before taking such actions given that the legal landscape around this situation is evolving each day. The Disaster Management Act, 2005 was enacted for setting up the National Disaster Management Authority and State Disaster Management Authority respectively and to have a unified command over disaster management. Until that is done private employers would be bound to pay salaries/wages to the employees during the lockdown in compliance with the direction contained in the order dated 29.03.2020. The argument was: Though I am qualified, they can get my replacement for cheap during … How frazzled parents are trying to solve the homeschooling dilemma With no end to the lockdown in sight, we talk to the parents who are grappling with times tables while trying to … Even this stance has no force for the reason that the expressions “give directions”, “measures to be taken by them” under Section 10 of the DM Act are wide enough to include not only measures that can be taken by the govt entities themselves but also includes such measures which are to be secured through involvement of private parties. Here the doctrine of reasonable classification would come into play. The current Covid-19 crisis has caused a number of employees to stop rendering services as the lockdown means that they cannot come into work or work from home. This implies that you have an emergency fund to sustain yourself during this period. However, the fact remains that Section 10 of DM Act, is a statutory provision and once an order is passed in compliance of any statutory provision, such order will take the statutory color. Yet another point which is being taken to nullify the above order date 29.03.2020, is that both the employer and the employee are equally affected by the epidemic and employer cannot be treated discriminately. Cut staff hours. But are the companies obliged to follow this? With stalled production due to Covid-19 lockdown, many companies reduced the size of their workforce to cut cost, resulting in widespread job losses. Bajaj Auto, India's third biggest two-wheeler manufacturer, has asked its factory employees to take a 10 per cent pay cut if production doesn't resume on April 21, which employees have agreed to. In mail to employees, co-founder and CEO Amit Singh stated that he and co-founder Deepanshu Malviya were taking a 50 per cent salary cut, adding that the company would have to forgo bonuses in … In order to examine the issue at hand, provisions of the Industrial Disputes Act 1947(ID Act), Disaster Management Act, 2005 (DM Act) and Epidemic Disease Act, 1897 are to be considered. Questions? If you would like to learn how Lexology can drive your content marketing strategy forward, please email [email protected]. Extraordinary situations, created by Corona Virus, require extra-ordinary measures for containment, there being no cure in sight. Introducing PRO ComplianceThe essential resource for in-house professionals. The order dated 29.03.2020 directing full payment of wages/ salaries during lockdown to all the workers has been passed under section 10(2)(l) of the DM Act. The powers of the National Executive Committee and the State Executive Committee have been listed in the Act. Natural Calamity is one such reason provided in the said definition because of which employer can deny employment or lay off the workman. In our view therefore, employer cannot resort to the provisions of lay-off as long as order dated 29.03.2020 is in force. HRKatha speaks […] Directions for use of private hospitals for treatment of patients and private hotels around the airport in Delhi to provide accommodation to the travelers at a specified rate during the lockdown cannot be violated by such hospitals and/hotels. Following provisions of the DM Act may be noted: (2) Without prejudice to the generality of the provisions contained in sub-section (1), the National Executive Committee may-. On the contrary if the above stance is accepted, Section 72 of the DM Act would become otiose. Larger organisations and startups with deep pockets may be better placed to ride through the current crisis. ... to any job loss or pay cut during this lockdown period. However, the order dated 29.03.2020 passed under DM Act is much wider and covers workers, primarily of the category of workmen (though not specifically stated so) working in all types of organization irrespective of its size. The ID Act provides that in case of layoff, workman concerned would be entitled to 50% of the wages. My company told me that they can not cut salary during Lockdown but they cut our CL PL AND SL Leave in next year 2020/2021 and manage our next month’s salary means after Lockdown total 9 months we are going on duty compulsory without leave,how can … Coronavirus: Hiring activity declines by 18 pc in March, reveals Naukri JobSpeak, Coronavirus: WHO, IMF say saving lives 'prerequisite' to save jobs, Search for what you want, categories, tags, keywords, authors, events, anything under YourStory, With Rs 14 lakh business per day, this astrology startup is making profits in the time of coronavirus, Recipe for success: How this startup got 1,200 restaurants to board its supply chain automation platform, These armed forces veterans are key to Amazon India’s operations, This 17-yr-old entrepreneur’s startup is helping blue and grey-collar workers upskill and find employment, Budget 2021: Expectations from education and EV players, [Funding alert] Zouk raises seed funding led by Titan Capital and others, Investing is a story of vision, courage and patience: Raamdeo Agrawal, Companies digitising most are creating maximum jobs, says ManpowerGroup study, Eyeing the next milestone: A year on, National Startup Award winners of 2020 are ready to aim higher, Sentiment in real estate turns optimistic in Oct-Dec; outlook for next 6 months positive: Report, [Funding alert] Social audio platform Headfone raises Rs 22 Cr led by South Korean VC firm Hashed. "Lexology is excellent and I look forward to reading it each day. Such measures, it is being contended, are to be by government authorities on their own and cannot be passed on to private entities. Affected employees can claim UIF money if an employer cut their hours (this is called the “reduced working time” claim). A mong the first things that the government did after announcing the complete lockdown a month ago was to ask employers (however badly their operations may have been affected) to make sure their employees were paid in full. Employee, more so of the workmen category, as a class has been treated separately for a definite object sought to be achieved namely to ensure that they strictly follow the lockdown and social distancing norms in the present situation. Persons drawing salary over Rs 1.50 lakhs per month may be subjected to cut of around 40 percent. However, on 29.03.2020, the Ministry of Home Affairs, Government of India, in exercise of powers contained in Section 10(2)(l) of the DMA, passes an order (No. Another point to be noted here is that the order dated 29.03.2020 can be modified by the competent authority in times to come depending on several factors including inability/difficulty of employers in continuing to pay full wages if the lockdown is to be extended for longer period. The order dated 29.03.2020 has been criticized by some stating that this order cannot override any statutory provisions like ID Act. While a complete lockdown due to the COVID-19 outbreak is yet to be announced in the UAE, the government on Monday called upon the public to stay at home except in cases of necessity, including getting essential supplies, such as food and medicine, or performing jobs. 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