Dear Seniors, I am working as an HR in an SME IT company, with a strength of 50 employees. One of our employee ABC had resigned in 1st week of February 2020 and serving notice period, his last working day is 15th Apr. Due to the unprecedented situation of COVID 19 the company has asked everyone to WFH and announced cost reduction and decided to deffer a percentage of employee salary for next 3 months which will be paid next year if achieve certain revenue.

I suggested management not to deduct employee ABC's salary as he is serving notice period, management answered that this decision is taken across the board for all employees whether working or serving notice period.

My question is does this reduction in salary applicable to employee ABC as he is already serving notice period & will not stay till next year? Does this have any legal implication?

Please guide me.

From India, Gurgaon

In my Opinion:
It is not advisable to reduce / deduct his salaries,since he has already resigend. The Govt has clearly come out with a direction to pay the salary of the Employees during the lockdown period without any deductions whatsoever under the Disaster Management Act.
Further, all the terminal benefits of the employee has to be settled immediately on his leaving the company.
Hence, any kind of deductions at this stage will only open the company for Litigation under Disaster Management Act and Industrial Dispute Act 1947.
Advise to pay full salary without any deductions.


Hi Partner,
The employee can sue the company for discrimination or retaliation on the grounds that he has resigned and is leaving the company.
While proceeding on a pay cut to the rest of the employees, there is at least an implicit communication that at a later stage they shall be receiving the differential amount.
But as long as there is no special clause for employees serving their notice period, it can turn out that the company is exploiting the situation for profit.

From India, Bengaluru

As per the Govt guidelines, it is not advisable to reduce or deduct the salary of the employee,since the employee has already resigned.
All the terminal benefits of the employee has to be settled immediately before the employee relived from the services.
The decision of board of directors hardly matters, and not binding. This is an act vindictive, the employee is suffered of vindictive action can go for legal action. The company can be called for action for violation of govt advisory came Disaster Management Act and Industrial Dispute Act 1947.

From India, Mumbai
can anyone share a sample letter for deducting salary due to covid19
From United Arab Emirates, Fujairah
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