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fatima bhatti
Is there any law, model or theory through which due to finacial crisis we can ask our potential employee to take half salary for certain time period. need terms and condition.
Is there any way paying half salary or less we can ask them to stay at home we will ask them to work as n when required

From Pakistan, Lahore
Learning & Teaching Fellow (retired)
Recruitment/talent Acquisition, Career Counselling
+2 Others


Dear Fatima,
Retaining employees is very challenging for HR person, if we are giving half salary or less salary their is no chance to retain for long time.
in this case i suggest to encourage employees to work their own, and feel them they are the part of organization and this is your organization.
follow some employees engagement kind of activities. tell them whats going in your organization about financial crisis etc, if employees is good he will work. and employees is not good so u you pay good amount he will leave.
most important is we will recruit those employees who are zeal to only work not for salary.

From India

Retaining employees is already a hard task for HR and it becomes harder when you are not willing to pay good salary or paying less or hlf salary. However, you can retain then at some level by offering some employee engagement activities.
But still, you look any option or do cost cutting in other areas and offer your employees a competitive salary as per the trends. You can do cost cutting on and save money by stop outsourcing you HR or payroll services as outsourcing of these HR and payroll service costs a lot. Instead of that you can opt for some affordable HR or payroll software like SaralPayroll and manage your HR and payroll process in-house in an easy way.

From India, Lucknow

There is a provision in Employees Provident fund rules that an emloyees provident fund contribution can not be reduced. Please keep this in mind in what ever scheme you formulate.
From India, Thane

Hello Fatima Bhatti,

Where are you located--India OR Pakistan?

The appropriate Laws will then apply.

However, in general, it all depends on how the employees WERE treated while things were good. If they were treated well, then you can speak to them--as a group OR department-wise [suggest avoid individual meetings to begin with--else you will be SEEN to be playing politics] & explain the situation. How the employees take it depends A LOT on how much they 'CONNECT WITH THE ORGANIZATION'--which in-turn depends on how they were treated thus far [reason for my First line].

Coming to whether such practices exist formally, they do in many countries--including India--especially in the IT sector.

Legally speaking, I don't think [though I will stand corrected on this score] there would be anything to bar an organization to resort to half-pay when the financial condition is REALLY BAD & agreed-upon by most of the employees. However, such practices WILL have to be a part of OTHER STEPS by the organization. For eg, IF the employees are retained on half-pay & the Directors go on foreign junkets OR there's perceptable wastage of scarce resources within the other functions of the company--you know the end-result.

All the Best.



From India, Hyderabad
Kamal Datta

Dear MS Fatima
It is more important to follow the actual laws. Motherhood statement will not work here. As per Laws , it is very clear that the facilities once given can not be withdrawn. Also one gentleman nicely quote that as per the provision of EPF act, salary once given can not be reduced. You can reduce salary amicably but if any one of them lodge a complain to the competent authority, your organisation will be in trouble then. It will be good if you can settle the matter amicably with the employee...but please do not act it legally...
Kamal Datta
078386 75321

From India, Kolkata

Dear Fatima,
The question is, is the financial crisis affecting just your firm or firms in your industry or the country in general? If it is the latter two then the workers will not be able to find other jobs easily and may accept the proposal. For example, see Recession forces a million to work part-time - Telegraph

From United Kingdom

Dear Fatima,
There is no law supporting your cause of giving employees reduced salaries for any reason, whatsoever. However, if your company is in utter financial strains it has to take employees into confidence with regard to the financial strains it has been experiencing. While convincing them on this account the company should stop outsourcing of jobs instead it should hand them over to the employees of the company. Once employees are convinced about the genuineness of the problem they can be convinced and offered reduced salary for a specified period after entering into a formal understanding with them on record.
Such problems have been faced in Sugar mills so often. Such a situation has occurred in some industrial organisations also in the past. But you will have to work hard on this.

From India, Delhi
fatima bhatti
Dear all
thank you for all your views. sorry for the delay from my end. we have discussed the scenario with our highly paid employees and we retained few of our staff on the same salary but we have taken back few of the benefits and few of them are in search of new job as we might not be able to keep them for long

From Pakistan, Lahore
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