Rkn61
Hr Manager
Bijay_majumdar
Freelancer In Hr &indirect Taxes For
P-lekha-jacobs
Senior Hr Consultant
[email protected]
Labour Welfare Officer
+1 Other

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Hi Team, Can anyone hep me in drafting out an email to the employees announcing pay cut due to corona out break Thanks in advance!!!!!
From India, Chennai
Dear All,

At the outset, hoping everything’s good at each of your end! I wish for good health, safety and well-being for each of you and your family!

I know you might be wondering what the subject of my mail means!!

So here’s how I would like to explain it!

You all are aware of the current situation worldwide and the corresponding implications on large and small scale businesses. Your Company is not and exception to this!

This is the time we need to learn how to handle the business in crisis situations. I Know my entire team is working relentlessly to make things happen and to get thru this challenging time together. The primary focus at present is to think of ways to hold on together, not give up and come up with ideas of how can we be successful and sail ahead as a family to the final destination which we always wanted to reach - of building a great company together.

While there are few clouds over us, there is even a ray of sun showing on 'XYZ co.'!! If it had to put this in simple words it meant that even in the current scenario of Covid-19 outbreak, we can sense positivity as we all know that in the present situation, the importance of Kirana stores has been well established and as a result 'XYZ; is getting its due credit too. Brands both large MNCs and Regional companies are asking us to scale as soon as possible to overcome the impact. We are also working with their tech teams to integrate backends and they are also ready for their support for store acquisition and tech adoption. We are also in touch with retailers regularly to understand their current challenges and mobilizing support from the brands for them.

Also, as many of you know and for those who did not know – Just prior to the Covid lockdown, we were amidst our negotiations with major large players. However, due to unforeseen circumstances things have come to a temporary standstill and aren’t moving fwd as per the expected / desired timelines. Having said this and looking at the positive confirmations of continuing interest from them we expect to close this in near future once the situation gets back to normal.

To summarise, while we are actively trying to cope up with this, it is time when Company needs support from each of you!!. Here’s how we need it:

(**)Effective 01 March 2020, we will retain with the Company:

1. 5 days of CTC of each employee per month applicable to those who’s monthly CTC is less than / equal to Rs.50,000.

2. 10 days of CTC of each employee per month applicable to those who’s monthly CTC is greater that Rs.50,000.

(**)The above revision in salary will continue to be in effect until the Company is able to come back with a good cashflow and liquidity which I am optimistic will not be for to long given the confidence I have on our team.

PL NOTE : The Company is not DEDUCTING the salary, we are only RETAINING a part of it in order to enable us to carry on the routine day-to-day operations. This will be paid back to you on a monthly basis once we are in better position with a greater cash flow and liquidity.

I hope you will take this in the right spirit. Pl don’t be disheartened / disappointed as every time shall pass!! And your company will definitely cope up with the business soon after the Covid-19 passes away. Let us all work together as a team in this tough period and I’m sure we will get thru this!

From India, Bengaluru
prior to this, have such decision was discussed with union bearers?
From India, Delhi
Even if you do not have a registered Union in your company, it is mandatory that a staff meeting should be convened and have a dialogue with all your employees regarding this.
From India, Aizawl
Hello, Such action must be taken with proper communication based on requirement of such step. Communication must be short & clear.
From India, Noida
Writing and Communicating both matters in such case..read more about this - https://rplg.co/d3bfbdc0
From India, Bengaluru
Hello,
This Action must be taken with proper communication with all concerned based on requirement of such step. Communication must be short & clear. should be have a dialogue with all your employees regarding this.

From India, Pune
A polite note to everyone who has helped this gentleman to cut salaries - please, this is unethical.
Culling wage/ salary rates is unethical and unprofessional. There are hundreds of ways - around - how resources can be utilized effectively during a pandemic. There is now literature available from premier Business Schools in the World on this. Please utilize this.
There is something named a 'deferred-salary-release' plan which many Organizations are resorting to - without losing valuable people and cutting salaries.
Do a faux soul search please, before even resorting to such unethical measures.

From India, Delhi
Dear Employees,,

Hope you and your family are healthy and safe. We, the management of the (name of the company) pray for the well being of each one of you and your families.

As you all are aware, the world is battling Covid -19 and there has been a severe loss of humanity and to the economy. Given the challenges ,businesses are put up with , it is going to take a while for the economy to revive. In these testing times, we as an organisation need to stay focused with the current business needs and work through these challenging times.

We, the management honor each and every team member's contribution to this organisation and the efforts each one of you during the on going crisis.

Our organisation is also undergoing some challenges in our businesses and it is our duty to ensure that we keep the morale of each one of you high. As we tide through the current crisis, there are some short -term financial decisions that the management has to quickly address. Given the falling revenue, the management took an overview of the operational costs of the organisation and assess the potential areas where we could cut costs to tide over the current storm.

The good news is that we would not be laying off any employee of this organisation that could cause hardship to the employee and their family. We also assessed the benefits that the company is giving to its employees and would like to inform you all that all the benefits would continue as is and there would not be any reduction.

Therefore, in order to reduce costs, the management decided that all the employees right from the Top to the bottom would take a salary cut of 10% for the next six months. This decision is in the best interests of both the employee and the company during this ongoing crisis the world is put up with.

We, understand that this could be a bitter pill to swallow and that you may be put up with some amount of financial hardship. Yes, there would be a need to re-plan your finances in the short run, but rest assured, this is not in the interests of a long term .

Dear friends, let us look at this cut in salary with a wider picture . Unlike a lot of organisations, where the employees are asked to leave in this grave situation, we have not taken such a stand that could jeopardize your living .

We value each one of you and our mission is to ensure that your jobs are safe here. This small sacrifice in testing times would go a long way in the well being of all our colleagues and we are confident that each one of you would be rewarded in the long run for the sacrifice you have done by taking a salary cut, which has enabled the company priorities its finances.

Together, we will overcome this tide with flying colours.

From India, Bangalore
On the very onset,I shall address that every company must have business continuity management plan in place.Where all emergencies are addressed with a view to sustain the operation of the company in limited resources and human resources both.

Having said this,

Pay cut is not a solution in this pandemic situation,but it is about convinicing the employees to sustain in minimum available resources and extend support towards maintaining the operation of the company.

WFH is one such good options,

Further The core management must ensure addressing such sensitive issues across meeting and discussions with prominent members of the organisation and As amicably as possible arrive at discision which would be shared among all employees and stake holders in the form of company directives and not in the form of mails.

It is the matter of organisation and not a small shop etc,that we address employees through mail and un authenticated statements or letters.

A policy of company on sustainance says that every descision should have agreement of all and must be towards the welfare of organisation and its valued employees.

From India, Vadodara

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