Applicability of "No work No Pay"
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Applicability of "No work No Pay"

whynotnaveen Started The Discussion:

During strike & unauthorised absenteeism, we implement No Work No Pay rule. But during Shut Down Holidays (Maintenance work & erection work), "No work No Pay" rule will be applicable or not?

If Employer decides not to pay salary for the employees during the shut down holidays, is it correct or not?

Thanks in advance.

rajkumar rai - Member Since: Jan 2007
Dear,

The "No work no pay" pertains with the payment of wages and this right of employer applicable when there is "NO WORK" on part of the employees. The same is mentioned in Payment of Wages Act, 1936 also.In the matter of shut down holidays it can not be considered in same manner because employee have no role to play in such condition of holidays. Difinitely if such activities are of prolonged period , you can explore the option of lay off according to provisions of law.

Regards,

Raj Kumar Rai

rajkumar rai - Member Since: Jan 2007
Dear,

The "No work no pay" pertains with the payment of wages and this right of employer applicable when there is "NO WORK" on part of the employees. The same is mentioned in Payment of Wages Act, 1936 also.In the matter of shut down holidays it can not be considered in same manner because employee have no role to play in such condition of holidays. Difinitely if such activities are of prolonged period , you can explore the option of lay off according to provisions of law.

Regards,

Raj Kumar Rai

kannanmv - Member Since: Apr 2009
Dear Naveen,

The options available are, schedule your maintenance work during long weekends or during holidays. If you are unable to do so you can ask them to work on a compensatory basis on some other holiday. Alternatively you can adjust the leave standing to the credit of employees after informing them.

Please note that in the event of Bandhs announced by Political parties the same situation arises. Working of the establishment gets affected owing to paralysing of transport. Do we pay for these days? Certainly not, either it is NO WORK NO PAY or working on a compensatory basis. Employer associations clearly send out ciculars advising employers about the stand taken by them on the above lines.

Trust the matter is clear.

M.V.KANNAN

PTRC - Member Since: May 2008
Are there any case laws on employees could not work because of third party- neither employees nor employer- what to do? Are there any provision in collective bargaining/agreements between Trade Unions/Employee reps and Management to protect pay in such situation, that any one knows

sricnk - Member Since: Sep 2010
Dear HR people,

What happens to loss during maitenance beachase of machine is down, where that loss is accounted similary the overhead you are bearing to pay off salaries during maintenance is same.

That means the cost of maintenance includes cost of labor (no work but still pay).

jai shastri - Member Since: Aug 2010
no its not say i am agreed with sricnk... no work but still pay... with regards jai shastri

ramakd1 - Member Since: Jul 2009
Here, 3 different situations are arising :- 1. strike - firstly, whether it is legal or illegal strike by the employees/ workers, and secondly, the strike caused by outsiders - political or others etc. 2. unauthorised absenteeism by employee and the 3. Shut Down Holidays (Maintenance work & erection work).

Now, for case 1 - if, the strike is illegal and, hence, invalid then the the theorem of " No work and No pay" is straightway applicable. But for legal / valid strike under the light of ID Act the same theorem might not be applicable. Before applying this theorem an analysis of the case on several grounds are required other wise the decision may be challenged in the court.

for case point 2, as it is simple and straight the theorem is directly applicable i.e. " No work and No pay" since it is the non- compliance of the rules and regulations and straightway it appears a disobey.

for case point 3, the shut down due to maintenance of machine etc the closure is initiated by the employer or management and these are the part of the yearly activities. Hence the theorem is not applicable but there will be 'No work but paid'. Suppose shutting down is for too long period then an alternative choice before the employer or management is to do "lay off". please note down that the shutting down is not the retrenchment or termination of the contract or employment.

I believe it is clear.

Regards,
Rama Kant

vcd_2512 - Member Since: Oct 2010
No work No pay rule could be applied only if it is the case of Absenteeism, strike etc. i.e. cause of No work due to workmen / employee.

Incase it is the decision of the company to shut down the company for a definite period of time for some maintenance work then the rule of No work No pay could not be applied as the workmen / employee is willing to come for work.

Vinay D.
AGM - HR
Bombay Stock Exchange Limited, Mumbai

surendra verma - Member Since: Mar 2010
Morally, ethically and legally it is not right of the employer to deduct the amount. Surendra Verma



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