Labour Law & Hr Consultant
Human Resource Professional

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Dear Senior, Please advice can we adjust employee s balance leave for monthly salary process purpose during lockdown period ,it is legally ok or not as per labour law or as per disaster management act.we comes under shops & establishment act & during lockdown we dont have business due to lockdown so can we adjust employee balance leave for monthly salary process purpose in lockdown case.
You are requested to please advice for the same.

From India, Haldwani
Dear Vishal,

The sudden and total stoppage of business /industrial activities and the involuntary absence of workers created by the nation-wide lockdown have given rise to some pertinent legal and moral questions. Getting an answer one way or the other for such questions has become impossible at this moment with the raising numbers of the afflicted people with the disease day by day and the gradual extension of the lockdown as the only possible preventive measure for the moment.

Therefore, my suggestion at this precarious moment is not to entangle oneself into unnecessary legal implications in haste. If your financial position is compatible with your concern for your employees, continue to pay them wages as usual or in the name of salary advance to be adjusted later. You should not on your own adjust the payment against their leave at credit without any written request from the concerned employees.

From India, Salem
Dear Sir, Thanks for sharing valuable information about leave adjustment issue.
From India, Haldwani

I beg to differ.

Adjusting leave is nothing but deduction, which has been prohibited under MHA order dated 29.03.20. The order is under challenge on its substance and also on its interpretation.

In the absence of any stay on that order, it is binding.

Giving salary advance, amounts indirectly again accepting liability of wages for April 20. It is nothing but deferring the wages.

In my opinion the order was unjustified, unreasonable and unenforceable on many accounts. Therefore, no need to bring employer's financial condition into consideration.

However, if an employer is concerned about the financial difficulties of employees, especially ;ow paid employees, he may a reasonable amount as advance (not salary, not lock-down, not covid, purely as an advance) without admitting the liability of wages, but subject to appropriation / recovery / differential payment if any on SC verdict on said order of MHA.

From India, Jalalpur
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