Dinesh Divekar
Business Mentor, Consultant And Trainer
Nagarkar Vinayak L
Hr And Employee Relations Consultant
+1 Other

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Dear All, We are a small manufacturing company in Mumbai; during the current COVID - 19 scenario, our scheduled production has been stopped also our client has postponed all the future projects and therefore there is no revenue and the company is unable to pay salaries to employees.
In this scenario, is there a possibility of reduction of salary against their leave or LWP until the situation is back to normal? Are there any directions from the government in this regard?
OR any advise to handle this situation lay off a few people who are not active or anything which in favour of company and employee
For betterment
Please advise
Thank you

Dear madam,
It is the predicament of all SMEs. The government directive is not to deduct any salary/ wages during the lockdown period. Compared to workers' plight, the company has better strength to bear this brunt. Please don't take any steps which will hurt workers who have tied their destiny with the company.
Please bear with the hope that this too will pass and better days will return.
I know it will appear sermonizing and will be difficult to digest in the present situation when the financial resources are drying up. But appreciate that you have something to give in this crisis whereas workers have nothing. For them it is question of survival.
Regards
Vinayak Nagarkar
HR and Employee Relations Consultant

Dear Minal,
Whatever the communication from the government, there is nothing wrong per se to submit an application to lay off the workers to the labour office. To know the provisions of the layoff, refer to the following sections of the Industrial Disputes Act, 1947:
a) The concept of " lay off " as defined u/s 2(kkk)
b) Sections 25-C of Chapter V-A and
c) Section 25-M of Chapter V-B
If the labour office turns down your request, then nothing can be done as such.
Thanks,
Dinesh Divekar

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