Dear experts, Instead of termination after the lockdown period, can companies reduce the current pay scale of employees? Kindest regards
From India, Bhubaneswar
Pay-Scale is structured proportionate to Few of the Following Factors:-
1. Character, Scope, Volume of Job-in-Hand to be Performed Strictly as per Needed Quality,
Quantity & Time Alloted;
2. Availability of Competent & Skillsful Doers in a Given Location-Characteristics;
3. Toughness of Workplace Conditions and or Conducive Factors etc
Attempt to Reduce Current Existing Package will Cause Discomfort & Disappointment Causing Losses in many ways. Present Lock-down is Imposed for Brief Temp Period to Contain this Covid-19 Contagion and will Be Relaxed suitabily. Deisit from Demotivating Workers ( all Cadres) and the Pressures Too Shall Pass, soon. Knee-Jerk Measures Are Unhelpful in the Long Run
Kritarth Consulting Pvt Ltd.
Management Care-Takers
21st April 2020
Bengaluru Service Centre

From India, Delhi

Try to talk to the employees personally and put forward the issues and see if there is a general agreement towards taking the pay cut and go for a revised salary structure but make sure there are no disagreements as one issue might lead to other and legal consequences may also follow. It all depends on the size of the company, the employees loyalty and the employer's financial capability to get over the crisis in the quickest possible time. Legally it may not be advisable but better than retrenchment at any time. First talk to them over phone/Skype etc before putting anything on paper.
Good luck
Thanks and Regards

From India, Hyderabad

You can think of disbursing wages to your workforce/temporary/migrant workers and think of
deferring the salaries of your supervisors and above for some time (say upto May 15-20), after having a dialogue with your staff members (if possible send individual communication).
Reducing the current pay scale is not recommended and not a legally viable proposition as the pay scale might have been already intimated to the employee through valid appointment letters/contract of employments. Moreover, a company once given a certain amount as pay, can not reduce the pay packet in normal course, but can increase the pay packet.

From India, Aizawl
Since our employees are accepted for 50% of the salary until the Company is able to come back with a good cash flow. Please provide any agreement format with employees for their 50% of the salary till until the Company is able to come back with a good cash flow.
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

From India, Bangalore

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