Dear Experts,

Need your view on the below points:

1. Can any organization (registered under Company Act) deduct employee fixed salary (agreed by both the party as employment agreement) without the consent of the employee?

2. If the situation is lockdown, like April'20 to July'20 then?

3. If the company is from medical/ healthcare segment and had a production growth of more than 3000% and business growth of 500% comparing the the FY2019-20, can they do salary cut?

4. During April'20-July'20 few employees paid 100% salary those who are close to the management and others (general employees) got 50% fixed salary, is it acceptable by law?

5. Regarding variable pay (which is performance linked) for the FY2019-20, can Company has the authority to not to pay, when few employees received it and few are not!!! You may assume that performer received the payment, but if anyone is not performer is it need to be communicate to the employee that you are not a performer hence you will not get it; when it is clearly agreed by both the party during appointment.

Need your valuable suggestion/ guidance on the above please.



From India, New Delhi
Labour Law & Hr Consultant
Hr Officer


Dear Paul,
I think that all your questions have been raised in the back drop of country-wide lock down due to the out break of the Covid-19. It is pertinent to note as of now that the Ministry of Home Affairs has withdrawn its orders issued under the DM Act,2005 on the compulsory payment of full salaries to employees on account of the lock down.
Therefore, your company can refuse to pay for the period of lock down on the basis of no work-no pay. Still it can be disputed by the employees claiming lay off compensation.
"NO" is the answer for all the other questions as they involve breach of the contract of employment and preferential treatment to some sections of the employees by the management.
The affected employees may jointly raise an industrial dispute u/s 2(k) of the ID Act,1947 or institute a Civil Case against the breach of the contract of employment depending on their employment status.

From India, Salem
Thank you very much for the clarification Mr. Umakanthan.M, it's really helpful.
What I understood that employers taking advantage of the situation and employees are suffering the most.
Your comments will help to the readers as well who was the victim of the situation.

From India, New Delhi

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